Commentary

C2.720 Unquoted securities held at 6 April 1965

Capital gains tax
Capital gains tax | Commentary

C2.720 Unquoted securities held at 6 April 1965

Capital gains tax | Commentary

C2.720 Unquoted securities held at 6 April 1965

These are securities which were not quoted on a recognised stock exchange on 6 April 1965 and had not been so quoted in the previous six years1.

On the disposal of such a security, any gain is restricted to the part apportioned to the period after 5 April 1965; this is called time apportionment2. For the method of computation of this apportionment, see C2.611. But for corporation tax purposes, and for capital gains tax disposals before 6 April 2008, the holder of the securities at 6 April 1965 may elect that, instead of time apportionment, securities acquired before that date are deemed to be sold and reacquired by him at their market value3. This means that on a disposal, the acquisition cost is taken as the April 1965 market value. For capital gains tax disposals on or after 6 April 2008 the general rebasing rule for assets held at 31 March 1982 (see C2.601) applies automatically without exception, so that the special rules for assets held at 6 April 1965 are no longer required. As regards the valuation of unquoted

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