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Calculating Capital Gains on Inherited Shares
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OmegaMale
Posted: 13 April 2024 16:17:55(UTC)
#1

Joined: 02/07/2020(UTC)
Posts: 535
All the recent discussions regarding Capital Gains calculations raised a question in my mind which Google can't answer to my satisfaction.

Assume a person inherits some shares and then, many years later, decides to sell them. For the purpose of CGT calculations, what value should be used as the "purchase price" for that calculation?

ie, is it the value at time of transfer to the recipient of inheritance (which seems logical) or the value at the original time of purchase (seems unreasonable and probably unknown)?

Thanks

OM
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Thrugelmir
Posted: 13 April 2024 16:35:38(UTC)
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Be the value at the date of death i.e. probate.
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OmegaMale on 13/04/2024(UTC), lenahan on 30/04/2024(UTC)
D Bergman
Posted: 13 April 2024 16:36:04(UTC)
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Joined: 22/03/2018(UTC)
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The gain is calculated from the value at the date of inheritance,
This date is actually the date of decease (rather than the date when assets are distributed),
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OmegaMale on 13/04/2024(UTC)
jeffian
Posted: 13 April 2024 17:54:01(UTC)
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Yes, it's the Probate Value (which is the value on date of death).
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OmegaMale on 13/04/2024(UTC)
Richard Aldridge
Posted: 15 April 2024 15:43:00(UTC)
#5

Joined: 25/04/2019(UTC)
Posts: 1
What happens if the shares collapse in value or even a company goes to zero? Ie you have 50k shares in a company but by the time you actually take ownership and have control over the shares they are worthless?
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Tim D
Posted: 29 April 2024 18:18:52(UTC)
#6

Joined: 07/06/2017(UTC)
Posts: 8,883
Richard Aldridge;302525 wrote:
What happens if the shares collapse in value or even a company goes to zero? Ie you have 50k shares in a company but by the time you actually take ownership and have control over the shares they are worthless?


In theory you can apply to HMRC to have the calculations updated. Conditions apply, see e.g
https://www.clarionsolic...n-light-of-coronavirus#
or
https://www.stephens-sco...g-in-value-after-death/
Many other similar articles can be found.
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