ATXP6 UK
Syllabus A2. Chargeable gains A2a. Gains and losses on the disposal of shares and securities

# A2a. Gift of quoted shares

### Syllabus A2a)

C4 Gains and losses on the disposal of shares and securities

### If you give away shares as a gift

#### Step by step approach:

1. Step 1
Value the shares using:

(Lower quoted price + Higher quoted price)/2

Note: the share valuation rules are different for IHT so be careful not to confuse them.

2. Step 2
Calculated Disposal proceeds
= Number of shares given * value per share (step 1)

#### Illustration:

Megha gifted 1,000 shares in N plc when they were quoted at 400-408 pence per share, with marked bargains on that day of 398p, 402p, and 407p.

• Calculate the value to be used for capital gains disposal proceeds.

#### Solution:

1. Step 1 - Value the shares
(400+408)/2 = 404

Note: the marked bargains are not relevant for CGT life gifts but they would be relevant for IHT

2. Step 2 - Calculated Disposal proceeds

= Number of shares given * value per share (step 1)
= 1,000 shares *£4.04 = £4,040