CGT sale of transferred shares

CGT sale of transferred shares

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I am sure I know the answer to this question but its that time of year!   My client had a large shareholding joint with her husband.  Very little base cost.  When she inherited her husband's half the base cost of that half was uplifted to the current value and she sold half her total shares shortly after receiving these.  I do have to share the new base cost between the original shares and the sold inherited ones dont I?  I can't attribute the new base cost just to the shares sold?   

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By Paul Soper
17th Jan 2014 11:12

Correct - it is pooling

It is the consequence of the pooling rules - perhaps the shares should have been sold by the estate before assenting to her legacy.  Too late to do anything now as the shares have been sold.  Before sale a deed of variation could have (might have) prevented her inheritance perhaps to preserve the full base cost.

Console yourself with the thought that her remaining holding has a higher base cost for calculating future gains.

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