CG55052 - Conversion of securities: compensation stock: identification rules

There are separate identification rules for the disposal of compensation gilts, TCGA92/S134 (3). These also cover gilts of the same kind which the taxpayer may have acquired by purchase or gift. Disposals should be identified in the following order.

• First against compensation gilts on a first in/first out basis.
• Then against non-compensation gilts on a first in/first out basis.