Capital Gains Tax
The market value at 31 March 1982 of each post consolidation ordinary share of 27.5p in the Company, for capital gains tax purposes after relevant adjustments, was 146.41p (25 shares 133.1p) for former Royal Insurance shareholders and 57.97p (25 shares 52.7p) for former Sun Alliance shareholders.
An adjustment to tax cost is required to take account of the 2003 rights issue, according to whether the rights were taken up or sold.
Similarly, for former Royal Insurance shareholders an adjustment to tax cost is required to take account of the 1993 rights issue, according to whether the rights were taken up or sold.
Shareholders holding shares in an ISA or PEP are not able to reclaim tax credits in relation to cash distributions paid on or after 6 April 2004. Shareholders should be aware of this in deciding whether to participate in the Company’s Scrip Dividend Schemes.
Changes to the Capital Gains Tax rules were introduced in April 2008. Any shareholder who is in doubt as to whether they were affected by these changes should seek appropriate tax advice.