Income Tax Act 2007 section 438

Market value of qualifying investments

Section 438 explains how the market value of qualifying investments is determined for the purposes of tax relief on gifts to charities, including a special rule for interests in offshore funds.

• Market value is determined using the standard capital gains tax valuation rules under sections 272 to 274 of TCGA 1992
• A special rule applies to interests in offshore funds where the fund managers regularly publish separate buying and selling prices
• For such offshore fund interests, the market value is taken as the buying price (the lower of the two published prices)
• The relevant buying price is the one published on the day of disposal, or if none was published that day, the most recent price published before the disposal date