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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5115
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am the executor estate, the person sold some unit

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I am the executor for an estate, the person sold some unit trusts ( not protected by an ISA) a month before she passed away, I believe the gains may be subject to CGT, however I have checked all her paperwork and although she held the units for many years I cannot establish any base cost to work from. How do I manage this in her tax return (2014/2015)

Hello and welcome to the site. Thank you for your question.

Please advise
Were the sale proceeds of these units trusts in excess of £44,000?

What were the sale proceeds?

Many thanks

Customer: replied 3 years ago.

Thanks for your quick response.

Unfortunately the units sold for £44227.00, also the estate is subject to IHT so it looks like it will have to pay CGT on the gain and IHT on the balance!

John, thank you for your reply.

We have two issues here:

For IHT purposes, the sale proceeds form part of the estate and you have to use £44,227 less CGT payable on it.

As far as CGT goes, you have stated you have back tracked the unit prices to the existence of the units. On a practical note, in the absence of actual contact note showing the buying price, you should consider the fist valuation you get from your excercise (the one nearest to purchase day) as your cost base and work out your gain from it.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 years ago.

Thanks for this, I can certainly back track to the start of these particular unit trusts ( started by Barclays in 1996) , but I the original units were called something else before and 'converted' into Barclays UT however I cannot track those particular units at all ( other than seeing on-line that they did exist).

I think that the units may have originally been purchased back in about 1983 when the lady received a lumpsum payout upon the death of her first husband - as far as HMRC are concerned is it OK to use the existing unit prices etc from inception and explain that we cannot find any details from earlier?

John, thank you for your reply.

If you are unable to back track to its origin, then the second best is to use the unit prices from its inception. If HMRC are unhappy they would have to provide you with the alternative price and come to some settlement.

I hope this is helpful and answers your question. and other Tax Specialists are ready to help you
I thank you for accepting my answer.

Best wishes.