Taxation of Chargeable Gains Act 1992 Schedule 11 paragraphs 3–5

Valuation of assets before 6th July 1973

Schedule 11 paragraphs 3 to 5 deal with how unquoted shares and securities should be valued for capital gains purposes when the relevant date falls before 6th July 1973, including special rules for assets acquired on death and for part disposals straddling that date.

• The special valuation rules in section 273 for unquoted shares and securities are applied retrospectively to any valuation date before 6th July 1973, even though those rules did not formally come into force until that date.
• Where an unquoted asset was acquired on a death between 31st March 1971 and 6th July 1973, the estate duty principal value generally ceases to stand as the market value for capital gains purposes and is replaced by a valuation under sections 272 and 273 — unless the estate duty valuation was made on an assets basis for a controlling shareholding under section 55 of the Finance Act 1940.
• Where a part disposal of an unquoted asset took place before 6th July 1973 and a further disposal of the remaining property occurs on or after that date, the original apportionment of acquisition cost between the part disposed of and the part retained must be recalculated as though section 273 had been in force at the time of the earlier disposal.
• The recalculation applies to the deemed market value on acquisition, the market value of the retained property after the earlier disposal, and — if the earlier disposal consideration was also deemed to equal market value — that disposal value as well.