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HMRC internal manual

Capital Gains Manual

Valuation: quoted shares: further points

Further points

The usual rule in TCGA92/S272 (3) does not apply if the prices quoted in the Daily Official List are affected by special circumstances. Any claim that there are special circumstances should be referred to SAV.

Market closed

If the London Stock Exchange is closed on the day you need a valuation you should compare the values on

  • the latest previous day, and
  • the next subsequent day

on which the Exchange was open and take the lowest figures, TCGA92/S272 (4).

Shares held at 6/4/65

A more generous basis of valuation applies to the market value of quoted shares or securities at 6 April 1965. TCGA92/SCH11/PARA6 provides that the formula in TCGA92/S272 (3) is amended to the mid-point between

  • the highest and lowest quotations on 6 April 1965, or
  • the highest and lowest prices at which bargains were done on that day


Non arm’s length disposal: large block of shares

TCGA92/S272 (2) prevents the flooding effect reducing the market value of an asset if a large block of assets are placed in the market at the same time. If you are dealing with a non arm’s length disposal of a large block of shares you may want to check whether TCGA92/S272 (2) applies by sending a CG29 to SAV. It is unlikely you would want to do this in a case in which the taxpayer’s valuation of the shares disposed of is less than £500,000.

Overseas companies

The special rules of TCGA92/S272 (3) do not apply to the market value of shares and securities quoted on a recognised overseas stock exchange. However, the guidance in CG59517 on checking valuations still apply. You should normally accept the taxpayer’s figures if you are certain the shares are quoted. If having established the shares are quoted you still want to check the value you should sent a form CG29 to SAV. See CTM60310 for details of recognised stock exchanges.