Share price

2412.00

+39.00p / +1.64%

Tax information

Base Cost of IHG shares for UK tax purposes

Changes to the base cost of InterContinental Hotels Group PLC (IHG) shares held since the Separation of Six Continents PLC (SC) in April 2003 to June 2007.

The PDF below sets out, as an illustration only, the changes to the base cost of IHG PLC shares, for UK Captial Gains Tax purposes, arising as a result of:

  • The Separation of SC in April 2003
  • The share consolidation associated with the IHG special dividend paid in December 2004
  • The capital reorganisation of IHG completed in June 2005
  • The share consolidation associated with the IHG special dividend paid in June 2006
  • The share consolidation associated with the IHG special dividend paid in June 2007
  • The share consolidation associated with the IHG special dividend paid in October 2012

Please note that this example does not cover any changes that might have occurred to the base cost of Mitchells & Butlers plc shares following Separation. It should also be stressed that this is an illustrative example only and does not constitute tax advice. Shareholders who access this information should be aware of this and if they are in any doubt as to their taxation position should seek their own professional advice.

Report of Organisational Actions Affecting Basis of Securities for US Shareholders

Under the provisions of Section 6045B of the Internal Revenue Code, a company (whether domestic or foreign) must report to the IRS any organizational action that affects the tax basis of US shareholders in their shares. Please find the Form 8937 below.

Special Dividend and Share Consolidation 2014

InterContinental Hotels Group PLC paid a Special Dividend of 179.4 pence per Ordinary Share (US$2.93 per ADR) on 14 July 2014. The Company also approved a related Share Consolidation on 30 June 2014. General guides to the UK and US taxation treatments of the Special Dividend and the Share Consolidation can be found on pages 10 – 15 of the shareholder circular dated 06 June 2014, describing the proposals.

Special Dividend 2013 (without share consolidation)

InterContinental Hotels Group PLC paid a Special Dividend of 87.1pence per Ordinary Share (US 133.0¢ per ADR) on 4 October 2013.

Special Dividend and Share Consolidation 2012

InterContinental Hotels Group PLC paid a Special Dividend of 108.4 pence per Ordinary Share (US$1.72 per ADR) on 22 October 2012. The Company also approved a related Share Consolidation on 8 October 2012. General guides to the UK and US taxation treatments of the Special Dividend and the Share Consolidation can be found on pages 10 – 15 of the shareholder circular dated 14 September 2012, describing the proposals.

Special Dividend and Share Consolidation 2007

InterContinental Hotels Group PLC paid a Special Dividend of 200 pence per share on 15 June 2007. The Company also approved a related Share Consolidation. General guides to the UK and US taxation treatments of the Special Dividend and the Share Consolidation can be found on pages 6 – 10 of the shareholder circular dated 4 May 2007, describing the proposals.

Special Dividend and Share Consolidation 2006

InterContinental Hotels Group PLC paid a Special Dividend of 118 pence per share on 22 June 2006. The Company also approved a related Share Consolidation. General guides to the UK and US taxation treatments of the Special Dividend and the Share Consolidation can be found on pages 5 – 8 of the shareholder circular dated 5 May 2006, describing the proposals.

Return of approximately £1 billion to IHG shareholders 2005

General guides to the taxation treatments of this return of funds to IHG shareholders in 2005 are contained in the Circular sent to shareholders on 3 May 2005.

Following completion of the capital reorganisation by way of the Scheme of Arrangement described in the Shareholder Circular, the Company, on 8 July 2005, paid shareholders £1.65 per IHG share held on 24 June 2005.

Special Dividend and Share Consolidation 2004

InterContinental Hotels Group PLC paid a Special Dividend of 72 pence per share on 17 December 2004. The Company also approved a related Share Consolidation. General guides to the UK and US taxation treatments of the Special Dividend and the Share Consolidation can be found on pages 5 – 8 of the shareholder circular dated 16 November 2004, describing the proposals.

Separation of the Six Continents Group 2003 Capital Gains Tax

The base cost for UK capital gains tax purposes of Six Continents PLC shares held on 11 April 2003 is allocated between the cash, InterContinental Hotels Group PLC ("IHG") shares and Mitchells & Butlers PLC (“MAB”) shares received as a result of the Separation.

The Company understands that the existing base cost for UK tax purposes in Six Continents PLC shares held on 11 April 2003 may be apportioned on a pro rata basis to the following amounts received:

  1. The total amount of cash received in respect of the 81p per Six Continents share cash payment;
  2. The cash payment received in respect of the sale of any fractional entitlement arising from the MAB share consolidation;
  3. The value of MAB shares received (being the number of MAB shares received multiplied by £2.21875); and
  4. The value of IHG shares received (being the number of IHG shares received multiplied by £3.71375).

The allocation to the MAB shares and IHG shares received is based on the share prices on the first day of dealing, being 15 April 2003. The relevant share prices for tax purposes are £3.71375 per IHG share and £2.21875 per MAB share.

The existing base cost can therefore be allocated in the following percentages:

Cash from 81p per Six Continents share A x 100%
A+B+C+D
Cash from fractions B x 100%
A+B+C+D
MAB shares C x 100%
A+B+C+D
IHG shares D x 100%
A+B+C+D

Historical information

For the purpose of calculating UK capital gains tax on a disposal of ordinary shares in Six Continents PLC held since 31 March 1982, the price of the Company’s shares at that date was 230.5p per share. This price must be adjusted for subsequent events, in particular the 1-for-5 rights issue in 1991, the 1-for-1 capitalisation issue in 1992 and the capital reorganisation of 25 new ordinary shares for 28 existing ordinary shares and the issue of one B share for each existing ordinary share, in February 1998. For the purposes of computing capital gains tax in connection with the capital reorganisation in February 1998, the prices of the new ordinary shares and the B shares on the first day of dealing, 9 February 1998, were 930.75p and 92.5p, respectively.

Individual Savings Accounts (ISAs)

Equiniti offers a Stocks and Shares ISA where IHG shares can be invested. Further information may be obtained from the address shown below, or through the helpline: Telephone 0871 384 2244*

Equiniti
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA

* Calls cost 8p per minute plus network extras.

IHG Shelter in a Storm Programme

The IHG Shelter in a Storm Programme enables IHG to support our hotels and local communities, employees and guests when a disaster occurs, by providing immediate and vital assistance.

If you would like to make a donation to the programme, you can do so online via a secure payment page: www.ihgshelterinastorm.com

Last updated 19 August 2014

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