Standard treatment

On demutualisation Standard Life issued 'free' shares to its members and allowed them to subscribe for more at a preferential rate (218.5p instead of 230p). Both types qualified for a 1 for 20 bonus in July 2007 if the shares were held continuously for a year. My client received 422 shares in July 2006 and got 21 bonus shares in July 2007. Presumably he has a chargeable gain for 2007-08?

The shares acquired at preferential rates are presumably a normal purchase and therefore have a base cost. Again the bonus shares are then also treated as a part disposal but receiving 'small' treatment. My client bought 915 shares for £2 000 and received 45 bonus shares on that shareholding.

My main area of confusion (apart from the general complication of it!) is that the Interactive Data Information service suggests that these shares are treated differently as far as the...