Based on the share prices of TalkTalk Telecom Group PLC (TALK) and “new” Carphone Warehouse Group plc (CPW) on the 29th March 2010, the base cost in “old” The Carphone Warehouse Group PLC for UK capital gains tax purposes should be allocated 63.90% to TALK and 36.10% to CPW.
Shareholders will need to give consideration to the proportion of shares provided at demerger when one CPW share and two TALK shares were allocated for every two “old” The Carphone Warehouse Group PLC shares.
If shares were acquired in "old" The Carphone Warehouse Group PLC at a price of 182.25p, then this would be allocated for UK capital gain tax purposes as follows:
|% Allocation||Purchase price||Allocation of purchase price||Demerged cost base|
|Carphone Warehouse Group plc||36.10||182.25||65.79||131.58|
|TalkTalk Group PLC||63.90%||182.25||116.46||116.46|