I bought £113k of US corporate debt of a company in Ch. 11. in August 2018.
In December 2018 as part of emerging from Ch. 11, I received:
£18k of cash
£37k of new bonds
some shares in the newly emerged company, which are private, but had a book value of £106k on December 31st 2018.
In June 2019 the new bonds repaid their due at the £37k par so I am now just left with private shares whose value I don't know how to determine.
What is the right CGT treatment for the re-org given the private shares? I have no idea whether they're actually woth book value or not so that doesn't seem an appropriate yardstick to use?
The only way I can see around not knowing what the shares are worth would be to realise a loss of £58k (£113k cost minus cash and bonds received) in December 2018 and then hold the shares at a zero cost basis (i.e. whatever I eventually sell them for would be a 100% gain) but would Mr. Tax Man agree with that?
Thanks in advance for any help
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