Section 104 ?

[waulkmill]

Again probably a fairly basic question I inherited shares from my late Father and have sold some; in the case of 3 or 4 companies I sold parts of the total holdings on different dates Does Section 104 apply or is it only when Purchases are made seperately?

[pawncob]

You inherited them as one item, so strictly s104 doesn't apply, but it's still one holding.

https://www.gov.uk/hmrc-internal-manual ... al/cg51575

[waulkmill]

Thank you for your reply I need to re read the section you refer to and maybe elsewhere . Obviously there is no 'expenditure' in my 'acquisition' of the shares but I had interpreted perhaps incorrectly
the bit in the manual 'Where a person only disposes of some of the shares in the Section 104 holding it is necessary to apportion the allowable cost according to the proportion of the shares disposed of ' ?

[waulkmill]

and also the first section 'From 6 April 2008 all shares of the same class in the same company acquired from 1 April 1982 onwards by a person within the charge to capital gains tax are pooled in a Section 104 holding.'

[bd6759]

All shares of the same type are help in a s104 holding. In you case there is is single aquisition, so the cost of the pool will be the probate value. If you sell half, then half the cost is is the allowable expenditure.

[waulkmill]

Thank you so 'half the cost' in your example is half the stockbrokers fees?

[waulkmill]

sorry no its half the cost of purchase isn't it or probate value in my case?

[bd6759]

If the shares were inherited, the acqisition cost is the probate value.

Incidental costs, such as stockbroler fees, will be allowed in full.

[waulkmill]

many thanks clear now!!

[waulkmill]

Just looking at my actual Tax Return - I am trying out Taxcalc - do I just need to include notes (a pdf file is suggested) re the multiple disposals - for example I inherited 725 shares in one company I sold 125 on one date and 600 on another ?