Valuations/Connected Persons

Question 1

Valuations

How Are Quoted Shares Valued For CGT Purposes?

Answer 1

By Averaging The Bid & Offer Prices.

Question 2

Valuations

How Are Units in a Unit Trust Valued For CGT Purposes?

Answer 2

At The Bid Price.

(The Lower of The ‘Bid’ & ‘Offer’ Prices)

Question 3

‘Connected Persons’

How Are Transactions With ‘Connected Persons’ Treated For CGT Purposes?

Answer 3

• Proceeds on Disposal = Market Value
• Losses Offset Against Disposals With The Same ‘Connected Person’

(Anti-Avoidance Provision)

Question 4

Inter-Spouse Transfers

When Assets Are Transferred Between Spouses:

Answer 4

The ‘No Gain, No Loss’ Rules Apply

Deemed Proceeds for Donor = Cost = Deemed Cost for Donee.

Question 5

Inter-Spouse Transfers

For Separating Spouses, Special Tax Treatment Applies Until:

Answer 5

• 3 Years After The End of The Tax Year of Separation; or
• The Date of Divorce.

(Whichever is Earlier)