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 January 2019.

The PDF below sets out, as an illustration only, the changes to the base cost of IHG shares, for UK Capital 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
• The share consolidation associated with the IHG special dividend paid in July 2014
• The share consolidation associated with the IHG special dividend paid in May 2016
• The share consolidation associated with the IHG special dividend paid in May 2017
• The share consolidation associated with the IHG special dividend paid in January 2019

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.

Download the 2019 IHG tax information sheetPDF 0.14Mb

Special dividend and share consolidation 2019

InterContinental Hotels Group PLC paid a special dividend of 203.8 pence per ordinary share (US262.1¢ per ADR) on 29 January 2019. The company also approved a related share consolidation on 11 January 2019.

Download the Shareholder Circular and Notice of General Meeting PDF 0.19Mb

Special dividend and share consolidation 2017

InterContinental Hotels Group PLC paid a special dividend of 156.4 pence per ordinary share (US202.5¢ per ADR) on 11 May 2017. The Company also approved a related share consolidation on 5 May 2017.

Download the Shareholder Circular and Notice of General Meeting PDF 0.14Mb

Special dividend and share consolidation 2016

InterContinental Hotels Group PLC paid a special dividend of 438.2 pence per ordinary share (US$6.329 per ADR) on 23 May 2016. The Company also approved a related share consolidation on 6 May 2016.

A general guide to the UK and US taxation treatment of the special dividend and share consolidation is contained in the Notice of Annual General Meeting describing the proposals.

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 to 15 of the shareholder circular dated 06 June 2014, describing the proposals.

• Download the Shareholder Circular and Notice of General MeetingPDF 0.23Mb

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 to 15 of the shareholder circular dated 14 September 2012, describing the proposals.

• Download the Shareholder Circular and Notice of General Meeting PDF 0.23Mb

Special dividend and share consolidation 2007

InterContinental Hotels Group PLC paid a special dividend of 200 pence per ordinary 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 to 10 of the shareholder circular dated 4 May 2007, describing the proposals.

• Download the Shareholder Circular and Notice of EGM PDF 0.01Mb

Special dividend and share consolidation 2006

InterContinental Hotels Group PLC paid a special dividend of 118 pence per ordinary 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 to 8 of the shareholder circular dated 5 May 2006, describing the proposals.

• Download the Shareholder Circular and Notice of EGM PDF 0.14Mb

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.

• Download the Shareholder Circular and Notice of EGM PDF 0.23Mb

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 ordinary share held on 24 June 2005.

Special dividend and share consolidation 2004

InterContinental Hotels Group PLC paid a special dividend of 72 pence per ordinary 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 to 8 of the shareholder circular dated 16 November 2004, describing the proposals.

• Download the Shareholder Circular and Notice of EGM PDF 0.13Mb

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:

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 can be found here.