CGT on Merger of Company Trading on TSX

[mike_302]

I had a small position in a company trading on the Toronto Stock Exchange, while I have been living in the UK and resident here for tax purposes.

The company was bought and merged with another company. I didn't do anything with my position. Eventually, my shares were automatically exchanged for cash. I got $X,XXX in Canadian dollars. The amount I received was worth well under £1,000.

Based on this, I've tried to figure out what I would need to report to the HMRC. I've referred to this page: https://www.gov.uk/guidance/capital-gains-tax-share-reorganisation-takeover-or-merger

However, I'm not sure if this would count as an Offshore fund -- in which case I understand it might fall under the Offshore funds manual (https://www.gov.uk/hmrc-internal-manuals/offshore-funds-manual/ofm01000). If it falls under the Offshore funds manual, then I believe the gain will have to be reported as Income instead, because I know the stock isn't Reporting -- i.e. no CGT allowance will apply...

I'm just hoping someone on here can shed some light on this slightly unique situation (merger of a company on a foreign stock exchange).

If you don't mind presenting me with some sample numbers, please assume my profit on the Merger activity was £100, and I'm comfortably in the 20% income tax band for my day job.

[mike_302]

Any thoughts on this topic? I can't be the only person in the UK, trading on foreign markets I suspect there are other knowledgeable people on this matter.

Thanks

[bd6759]

It seems from what you are saying, the new company bought your shares for £1,000.
That is a simple capital gain and well below the tax threshold.

[mike_302]

I'm happy with that conclusion, but any comment on the offshore nature of this?

[mike_302]

... but any comment on the offshore nature of this?