I4.310 Loss on sale of shares — examples
Examples of loss on sale of shares
Example 1 — simple sale
Morris died leaving an estate which included the following holdings of qualifying investments:
|Number||Class||Company||Value at date of death|
Within the 12 months following the death, M's executors sold shares as follows:
All the sale prices represented the best consideration which could reasonably have been obtained for the shares at the time of sale.
The relief is calculated:
The value of the qualifying investments included in the estate is therefore reduced by £1,000, if the relief is claimed by the appropriate person.
Example 2 — purchase then reinvestment
N died leaving an estate which included the following holdings of qualifying investments:
Eleven months after the death, N's executors sold the holdings of shares in X Ltd and Y Ltd for £10,000. The loss on sale amounted to £3,000.
Within the 13 months after the death the executors invested, in their capacity of executors of N, a total of £2,000 in the acquisition of shares in Z Ltd which were
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