Demerger: base cost

Demerger of the Gocompare.com Group from the esure Group

Base Cost Apportionment

This information is provided as indicative guidance only. Gocompare.com Group plc (“Gocompare.com”) accepts no responsibility for the use that may be made of this information. This does not constitute tax or financial advice and must not be relied upon as such. Any person wishing to calculate their UK chargeable gains should consider their own particular circumstances and consult an appropriate professional adviser.

The demerger of Gocompare.com from esure Group plc (“esure”) was approved by esure shareholders on 1 November 2016 and Gocompare.com shares (ticker “GOCO”) were admitted at 8:00 a.m. on 3 November 2016 to the premium segment of the Official List and to trading on the main market of the London Stock Exchange. Shareholders registered on the esure share register at the Record Time of 6 p.m. on 2 November 2016 received one Gocompare.com share for each esure share then held by them.

For the purposes of UK taxation of chargeable gains, the base cost of esure shares held immediately before the demerger is apportioned between esure and Gocompare.com shares as follows:
esure: 73%
Gocompare.com: 27%

This apportionment, made pursuant to section 130(2) Taxation of Chargeable Gains Act 1992 (“TCGA”), is calculated by reference to the market values of Gocompare.com and esure shares on 3 November 2016. Using the methodology prescribed pursuant to section 272(3) TCGA and the Market Value of Shares, Securities and Strips Regulations 2015, the market values of Gocompare.com and esure shares were as follows:
esure: £1.96
Gocompare.com: £0.72

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