Investors

Share capital history
In August 1997 Severn Trent PLC’s share capital was reorganised and then consolidated. Find out how this affects the tax treatment of your share.

Share capital reorganisation

On 11 August 1997, the Company’s share capital was reorganised and then consolidated whereby, for every 20 existing Ordinary shares of £1.00 each, shareholders received 19 new Ordinary shares of 655 / 19 pence each and 20 B shares of 38 pence each. 

At the Annual General Meeting on 1 August 2000, shareholders resolved to cancel the B shares and, following an application to the Courts, the capital of the Company was reduced and the B shares were cancelled with effect from 1 November 2000.

Capital Gains Treatment

For the purpose of Capital Gains Tax calculations, the market values of the new Ordinary shares of 655 / 19 pence each and the B shares of 38 pence each on 11 August 1997 were 820 pence and 36.25 pence respectively.  The base cost of the old Severn Trent shares held immediately prior to the Share Capital Reorganisation was apportioned between the new Ordinary shares of 655 / 19 pence each and the B shares of 38 pence each, in the following ratio –

Ordinary shares of 655 / 19 pence each - 95.55%
B shares of 38 pence each - 4.45%

Worked example

Please click the button below for a worked example. However, if you require further information regarding the tax treatment of your shares in Severn Trent or are in any doubt about your taxation position you should obtain professional advice.

Should you require further information please contact us using the link

However, if you require further information regarding the tax treatment of your shares in Severn Trent or are in any doubt about your taxation position you should obtain professional advice.