Hanson - Apportionment on Demerger of Imperial Tobacco Group PLC
and Millenium Chemicals Inc on 1 October 1996
- For Capital Gains Tax, the tax base cost of Hanson PLC shares held 1 October 1996 should be apportioned between the three shareholdings after the demerger: Hanson, Millenium Chemicals Inc and Imperial Tobacco Group PLC.
- The shares were distributed in the ratio of:
1 Millenium Chemicals Inc share for every 70 Hanson shares held and
1 Imperial Tobacco Group PLC for every 10 Hanson shares held.
- The apportionment is calculated by reference to the relevant prices of Hanson and Imperial Tobacco Group PLC shares on 1 October 1996 and Millenium Chemicals Inc shares on 2 October 1996:
Imperial Tobacco Group PLC 390.5p
Millenium Chemicals Inc $22.0625 @ $1.56555:£1
- Thus the tax base cost of Hanson shares held on 1 October 1996 should be divided as follows:-
- Hanson 61.175%
- Imperial Tobacco Group PLC 25.618%
- Millenium Chemicals Inc 13.207%