Examples of loss on sale of shares
Example 1 — simple sale
Morris died leaving an estate which included the following holdings of qualifying investments:
| | | |
| Shares | |
| Number | Class | Company | Value at date of death |
| | | £ |
| 5,000 | Ordinary | X Ltd | 10,000 | |
| 1,000 | Ordinary | Y Ltd | 3,000 | |
| 4,000 | Preference | Z Ltd | 4,000 | |
| | | | |
Within the 12 months following the death, M's executors sold shares as follows:
| | | |
| Shares | |
| Number | Class | Company | Gross proceeds |
| | | £ |
| 5,000 | Ordinary | X Ltd | 8,000 | |
| 500 | Ordinary | Y Ltd | 2,000 | |
| 3,000 | Preference | Z Ltd | 3,500 | |
| | | | |
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:
| Shares | | | |
| Number | | Class | Company | | |
| A: | 5,000 | Ordinary | X Ltd | £10,000 | |
| 500 | Ordinary | Y Ltd | 1,500 | |
| 3,000 | Preference | Z Ltd | 3,000 | 14,500 |
| Deduct B: | | | | | |
| 5,000 | Ordinary | X Ltd | 8,000 | |
| 500 | Ordinary | Y |
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:02