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HMRC internal manual

Shares and Assets Valuation Manual

Capital Gains Tax procedures: quoted shares

With effect from April 2015 the Market Value of Shares, Securities and Strips Regulations 2015 (SI 2015/616) provides that the market value of shares or securities listed in The Stock Exchange Daily Official List shall be:

(a) on any day the Stock Exchange is open, the lower of the two prices shown in the Stock Exchange Daily Official List for that day as the closing price for the shares, securities or strips on that day plus one-half of the difference between those two figures, and

(b) on any day the Stock Exchange is closed, that value on the latest previous day on which it was open. 

Shares traded on markets such as AIM and NEX Exchange are not treated as quoted or listed for tax purposes.  However, for practical purposes, the closing mid-market price on the date of valuation may, in many cases, be viewed as the market value.

A list of all shares or securities formerly quoted on the London Stock Exchange which have been officially declared of negligible value for the purpose of S24 (2) TCGA is maintained on GOV.UK . This list is updated monthly.

Inspectors are instructed to refer the following matters to SAV:

  • CGT cases where it is considered that there are ‘special circumstances’ in consequence of which the prices quoted are not a proper measure of the market value (Section 272(3) TCGA 1992.
  • Claims that by reason of its size a holding should have a special reduction in price. (Such reductions are precluded by the IHT and CGT legislation.)
  • All cases where any individual holding of shares with a full listing is valued at over £1,000,000 and/or where a holding of shares on markets such as AIM and ICAP exceeds £100,000 in value.
  • Suspended quotations.
  • Cancelled quotations, unless and until it is clear that the company is now an NQ and the former quotation is irrelevant for valuation purposes.
  • Claims that shares, following suspension or cancellation of a quotation, have become of negligible value for CGT.

The instructions to Inspectors about valuing quoted shares are set out at in the CG Manual at CG 59510 +.

If a form CG29 contains a request for valuation of unquoted shares, you should accept the CG29 in lieu of a CG30, seeking any necessary further information from the Inspector.

  Additional Guidance: SVM150000