| Commentary

36.2 Capital gains tax

| Commentary

36.2 Capital gains tax

Whether the shareholder is disposing of his shares by way of sale or gift, the calculation of the gain will be made according to the usual rules1 with market value being substituted for the proceeds of sale if the outgoing shareholder is making a gift of the shares, for example to a son or daughter2. As with the position of the sole trader and partner3, the most significant relief available to a shareholder disposing of his shares in a limited company used to be taper relief4. This was because shares in an unlisted trading company were usually treated as business assets for taper purposes and therefore the gain could benefit from a 75% reduction provided the shareholder had owned the shares for at least two years on disposal5.

As mentioned

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial