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Share Value

JodieRJodieR Experienced MentorRegistered Posts: 1,002
My client found out last year that when her mum died in June 1993 she'd left her some shares in a Ltd Company. The company was liquidated in 2012/13 and my client received approx £80k from the liquidators. As she had no prior knowledge of this she has no idea what the value of the shares was at the time she inherited them. I have downloaded a copy of the company's accounts from Companies House which show the balance sheet at 28/02/1994 (I can't go back further than this). She inherited 32% of the shares in the company, so do you think it's acceptable to use a value of 32% of the balance sheet total as a cost value of the shares to calculate her gain?

Comments

  • paulstaffordpaulstafford Feels At Home Registered Posts: 126
    Weren't the share's valued during the probate process following her mothers death?
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    Yes, they probably were, but my client doesn't think she'll be able to get copies of these papers as it was so long ago and she has no idea who dealt with it. She is trying to find out from her cousin, but if he doesn't have any information either then this is the only other way I can think of to go about it.
  • villapbvillapb Trusted Regular Registered Posts: 357
    Jodie how do you know there is a gain. The liquidated value of the shares could be less than the probate value of the shares at death. Therefore no capital gain of the shares since the death of her mother, that's what id say anyway and let hmrc prove otherwise. The revenue on there site point to what you are thinking, but the word "liquidation" to me points to a lower share value 2012/13 compared to 1993.
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    Although the company was liquidated there was still a large amount of assets which were sold and distributed in 2012/13. Judging from the balance sheet at Feb 1994 I estimate the shares to have been worth approx £30k then, so we're looking at a £50k gain. The company traded up until about 2006 so it could well have increased significantly in value over the years. I have no idea why she didn't ever receive dividends for all that time,
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