Company: COPL-UN
Filing Date: 2025-04-01
Form Type: S-1/A
Source: 0001829126-25-002247
Chunk: 332

Company: Copley Acquisition Corp
Filing Date: 2025-04-01
Form: S-1/A
Chunk 332
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. U.S. holders should consult their own tax advisors regarding the availability of the lower rate for any dividends
paid with respect to our ordinary shares.

Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of Class A Ordinary Shares and Warrants

Upon a sale or other taxable
disposition of our Class A ordinary shares or warrants which, in general, would include a redemption of Class A ordinary shares or warrants
as described below, and including as a result of a dissolution and liquidation in the event we do not consummate an initial business
combination within the required time period, and subject to the PFIC rules discussed below, a U.S. holder generally will recognize capital
gain or loss in an amount equal to the difference between the amount realized and the U.S. holder’s adjusted tax basis in the Class
A ordinary shares or warrants.

Any such capital gain or loss
generally will be long-term capital gain or loss if the U.S. holder’s holding period for the Class A ordinary shares or warrants
so disposed of exceeds one year. Long-term capital gains recognized by non-corporate U.S. holders will be eligible to be taxed at reduced
rates. It is unclear, however, whether the redemption rights with respect to the Class A ordinary shares described in this prospectus
may suspend the running of the applicable holding period for this purpose. If the running of the holding period for the Class A ordinary
shares is suspended, then non-corporate U.S. holders may not be able to satisfy the one year holding period requirement for long-term
capital gain treatment, in which case any gain on a sale or other taxable disposition of our Class A ordinary shares or warrants would
be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. The deductibility of capital
losses is subject to limitations.

Generally, the amount of gain
or loss recognized by a U.S. holder is an amount equal to the difference between (i) the sum of the amount of cash and the fair market
value of any property received in such disposition (or, if the Class A ordinary shares or warrants are held as part of units at the time
of the disposition, the portion of the amount realized on such disposition that is allocated to the Class A ordinary shares or warrants
based upon the then fair market values of the Class A ordinary shares and the warrants included in the units) and (ii) the U.S. holder’s
adjusted tax basis in its Class A