»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp ordinary rules of Section 272(1) TCGA 1992 apply to the market value of unquoted shares and securities. »Ê¹ÚÌåÓýapp value is equal to the price you would expect in an open market sale between a hypothetical willing seller and a hypothetical willing buyer. Section 273 TCGA 1992 deals with the information that would be available.

»Ê¹ÚÌåÓýappre are many circumstances in which the open market value of an asset may need to be agreed for Capital Gains. »Ê¹ÚÌåÓýapp most common are:

• where an asset is disposed of to a connected person or otherwise by way of a bargain which is not at arm’s length. Sections 17 and 18 TCGA 1992 refer;
• where only part of an asset is disposed of and a valuation is needed of the part retained. Section 42 TCGA 1992 refers;
• where an election has been made for market value at 6 April 1965. Schedule 2 paragraph 17 TCGA 1992 refers;
• where rebasing to 31 March 1982 applies. Section 35 TCGA 1992 refers;
• where an asset is inherited. Section 62 TCGA 1992 refers;
• where an asset is disposed of for consideration including Qualifying Corporate Bonds. Section 116 TCGA 1992 refers.
• Where an asset is acquired by a creditor in satisfaction of a debt. S251(3) TCGA 1992.

Where, of course, a disposal is at arm’s length between unconnected parties, there is no need to substitute market value for the actual proceeds of sale.

Additional Guidance: SVM150000