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Cost base of shares inherited from an estate

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I have a CGT question regarding the inheritance of shares as a beneficiary to an estate.


It is not completley clear to me what the cost base will be for the beneficiary of inherited shares where the shares were all originally purchased by the deceased after the 20th September, 1985.

 

I interpret it as one of the following, or maybe there is another interpretation.

  1. The cost base for the beneficiary for the purposes of CGT calculations is the market value of the shares as of the date of death. That is, the date on which the beneficiary is deemed to have acquired the shares as part of a deceased estate transfer.
    Or.......
  2. The cost base for the beneficiary for the purposes of CGT calculations is the original cost base as if the deceased person was still alive. That is, the beneficiary gets no real advantage here, they are deemed to have inherited the full buying and selling history of the deceased person and as such has to know the breakdown of the cost base across the share parcel.

Which one is it?

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TaxTime Support

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Hi @badger55

 

Welcome to our community and thanks for your first post.

 

As you will see from the link included 1. is talked to on our website under Deceased estates and capital gains tax in Paragraph 2.

 

I hope that helps you.

 

Kind Regards
MarkA

1 REPLY 1

Best answer

TaxTime Support

Replies 0

Hi @badger55

 

Welcome to our community and thanks for your first post.

 

As you will see from the link included 1. is talked to on our website under Deceased estates and capital gains tax in Paragraph 2.

 

I hope that helps you.

 

Kind Regards
MarkA

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