I bought 900 BT shares at 335p in the 1993 public offer. On 31 Dec 94 BT gave me 90 bonus shares (1 for 10) as per the prospectus. I subsequently sold all 990 in a single transaction. I am confused about the CGT position. I made a single payment of £3015 for the first batch and made no payment (of course) for the bonus 90. So as far as I am concerned I have paid £3015 for a total of 990 shares.However, I have read advice which says in effect that “the price of the bonus shares is treated as 376.25p for CGT purposes”. What does this mean in practical terms? Am I deemed to have paid 376.25p for the 90 shares, a total of £338.62? When calculating profit or loss, should my original £3015 be reduced, or increased, by this transaction, or not affected at all? Does it relate to calculations needed when selling part of my holding, so that - because I sold the whole lot in one go - it has no relevance to me at all? I hope so!
