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Where Taxpayers and Advisers Meet

Shares passing to spouse by survivorship

Brightonian
Posts: 99
Joined: Wed Aug 06, 2008 3:31 pm

Shares passing to spouse by survivorship

Postby Brightonian » Fri May 24, 2019 9:59 am

I am hoping that someone can confirm my understanding. If a share portfolio passes to a spouse by survivorship, the spouse acquires each holding at their probate value. The shares are added to the spouse's pool and subsequent sales are taken from this pool, made up of the spouse's 50% at original cost and the deceased's 50% at probate value. Is that correct? I ask because I have looked at S.274 TCGA 1970, which states that, because it is exempt from IHT, the value has not been ascertained and must be negotiated on sale. Am I right in thinking that this is not a problem for quoted shares, where the market value is easily ascertainable? Thank you for any clarification you can give.

maths
Posts: 7580
Joined: Wed Aug 06, 2008 3:25 pm

Re: Shares passing to spouse by survivorship

Postby maths » Sun Jun 02, 2019 7:53 pm

Yes, correct.

As they are quoted simply use market value.

Brightonian
Posts: 99
Joined: Wed Aug 06, 2008 3:31 pm

Re: Shares passing to spouse by survivorship

Postby Brightonian » Tue Jun 18, 2019 11:16 am

Thank you, Maths. I apologise for my belated thanks but, for some reason, was not notified that I had had a response.


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