US stock merger payment in ISA - form for the certification of treatment of merge payment

[sonix989]

Hi I bought the stock SLACK (Slack Technologies Inc) in my ISA which has merged with Salesforce and now I have received a form from my broker which I need to fill out and return but not sure how to complete. I can't post links but a Google saerch of "Form for the certification of treatment of merger payment" will show up a similar form - in mine, Part A also has a Interest in Other stock option.

Can anyone assist? I understand I got cash and shares converted. I assume I would not need to pay any tax as it was held in an ISA.


Form for the certification of treatment of merge payment
merger between Slack Technologies Inc and Salesforce Com Inc, please also note the below.
The proceeds of the merger may be subject to Section 302 processing and as such may be treated as Income or Capital as determined by the company.
If the proceeds are treated as an Income payment the corresponding tax will be debited. There may be a process in which holders will be able to claim the tax back. Holders will be notified if this is available following the payment of the event. There is a processing fee of 2.5% of any successful reclaim.

[ursaminortaur]

Hi I bought the stock SLACK (Slack Technologies Inc) in my ISA which has merged with Salesforce and now I have received a form from my broker which I need to fill out and return but not sure how to complete. I can't post links but a Google saerch of "Form for the certification of treatment of merger payment" will show up a similar form - in mine, Part A also has a Interest in Other stock option.

Can anyone assist? I understand I got cash and shares converted. I assume I would not need to pay any tax as it was held in an ISA.


Form for the certification of treatment of merge payment
merger between Slack Technologies Inc and Salesforce Com Inc, please also note the below.
The proceeds of the merger may be subject to Section 302 processing and as such may be treated as Income or Capital as determined by the company.
If the proceeds are treated as an Income payment the corresponding tax will be debited. There may be a process in which holders will be able to claim the tax back. Holders will be notified if this is available following the payment of the event. There is a processing fee of 2.5% of any successful reclaim.

As far as I am aware the US doesn't recognise the existence of ISAs. Hence I believe this is just saying that , assuming the company decides to treat this as income, they will debit the tax at source. They hold out the possibility that you maybe able to reclaim that tax back but there will be a processing fee. I've never been involved in such a situation but could see such a reclamation process getting somewhat messy as the ISA is a nominee account so things may have to be done through your ISA provider.

[Gengulphus]

... I assume I would not need to pay any tax as it was held in an ISA.

That's too sweeping an assumption. The correct assumption to make about ISAs is that you won't have to pay any UK Income Tax or UK CGT. Other UK taxes (e.g. stamp duty on share purchases) and all foreign taxes generally have to be paid - there might be some specific combinations of the country imposing the tax and the tax it's imposing that don't have to be paid by ISAs, but if so, they're rare.

Gengulphus

[sonix989]

... I assume I would not need to pay any tax as it was held in an ISA.

That's too sweeping an assumption. The correct assumption to make about ISAs is that you won't have to pay any UK Income Tax or UK CGT. Other UK taxes (e.g. stamp duty on share purchases) and all foreign taxes generally have to be paid - there might be some specific combinations of the country imposing the tax and the tax it's imposing that don't have to be paid by ISAs, but if so, they're rare.

Gengulphus

True it's not all tax free within an ISA but I thought it would be treated as a gain as some of the original stock was converted to the new stock and the rest paid out in cash as if I sold some. In any case, is it likely that I will get any tax back by filling out the form and how do I fill it out anyway?