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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3822
Experience:  FCCA FCMA CGMA ACIS
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I iherited 5035 shares in RBS from my husband in June 2008.

Customer Question

I iherited 5035 shares in RBS from my husband in June 2008. The share consolidation in June 2012 resulted in a 1:10 split so the holding was reduced to 503 shares. I sold these in the 2014-15 tax year.
Probate value was £12079
Sale proceeds (after costs of £11) were £1737
How do I treat this for CGT purposes (I have other gains/losses for this tax year)
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Can we just clarify that you sold this inherited holding at a huge loss from the probate value?
Customer: replied 1 year ago.

Yes - unfortunately my husband died just as the banks came crashing down so we both made substantial losses on those we had shares in!

I am confused as to how the consolidation should be treated in my RBS CGT calculations.

Expert:  bigduckontax replied 1 year ago.
You have a loss for CGT purposes of GBP 10331 which you aggregate with all other gains and losses incurred in the tax year. Simple, as the Merkat in the TV advert would say! Just make sure you keep a record in case HMRC have any queries. Your acquisition price was the probate value and the disposal price you know. the difference between the two is the net gain for CGT purposes. I do hope that my reply has been of assistance to you.
Customer: replied 1 year ago.

Just to be certain, that means the share consolidation has made no appreciable difference to the way the calculation is done (ie I don't have to bother with the pre and post consolidation individual share price)

Is this because my proportion of shares in RBS stayed the same?

If so, I have been worrying unnecessarily and am grateful to you for

giving me peace of mind!

Expert:  bigduckontax replied 1 year ago.
Yes, you don't have to worry about the share consolidation, just keep a note so you remember the details. Remember it happened to thousands of you and several Edinburgh shareholders broke the windows of Fred (Fred the Shred) Godwin's house, an old Scottish custom from Georgian times! I think you are over worried; it's just a normal capital loss item.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for you excellent support.

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