Base cost for CGT

Base cost for CGT

Didn't find your answer?

I have a client who has recently liquidated some shares under a ESC C16 arrangements.

The accountant (we dont act for company) has supplied draft CGT computation showing base cost as estimated 1982 value (company has existed since 1948).

However my client has held some shares in joint ownership with her now deceased husband since mid 60's. Here I agree on 1982 valuation as being appropriate.

However is this also appropriate for those half shares obtained because of her husbands death, should that be a base cost at IHT level.

Further her husband own more shares solely some of which passed to my client, again should base cost reflect IHT value.

Under circumstances where they were not a married couple the situation would be fairly simple but interaction of the no gain/no loss principle with spouse IHT exemption is giving me a headache.

Duane Shield

Replies (2)

Please login or register to join the discussion.

avatar
By Taxboss
01st Sep 2006 11:41

Inherited base cost
Shares inherited from a deceased spouse are deemed to have been acquired on date of death and at the valuation at that time.

The no profit/no loss rule applies to lifeime transfers and is not therefore appropropriate in this case.

Thanks (0)
avatar
By perpetual
04th Sep 2006 13:36

ta
Geoffrey

Thank you

That was my leaning. So I will prepare on that basis.

Thanks (0)