Getting shareholder info and paying CGT

grumpytrousers

Hi all -

My parents bought shares, in a company a few years ago...1997 and possibly on a few occasions subsequent to that as well - I'm not too sure exactly on amounts or times. My dad tended to take care of that sort of thing; he died last May.

My mum sold a few of those shares (at a tidy profit thank you very much ) and there is now Capital Gains Tax to be paid. Trouble is, we're not too sure of exactly how much...

The documentation I can lay my hands on at home doesn't appear to be complete. There are one or two confirmations of purchase from the stockbroker, but that's about it.

I would have thought that somebody somewhere would have some record of the holding my parents had from the date they went on the books of the company as a 'member' along with the size of their holdings?

Is this the case? Can I write to the Registrar of the company and ask for (and get) all this information. I already popped an email off to them but they seemed to be fobbing me off and telling me to consult our broker; unfortunately our broker doesn't have any records pre-2001 as they changed over their computer system then. Or so they tell me...

Suppose short question is -
for paying CGT, what info do I need (or rather my Mum, but she's crap with numbers, hence this is falling to me!)
From where can this info be gotten...

thanks in advance...

GT

Kinetic^

Strict;y speaking its 20% across board on any gains but there are a few rules which apply also.

If you want me to have a look at it you can PM me with details.

RainyDay

To calculate the CGT, you will need to know the quantity/price/date of each purchase and sale.

A lot depends on whether the shares were purchased in your father's name, or held in a 'nominee account' via a broker. I'm suspected the latter if the registrar has referred you to the broker. You could try a request under the Data Protection Act to the broker, though such requests normally relate to the person making the request - I'm not sure if you can request data for your father under the Act - Are you the executor of the will?

Once you get the detailed info, use the CGT calculator mentioned on Askaboutmoney.com to calculate your exact liability.

ck1

When making the calculations remember that CGT on the element of shares that were transfered on death to your mother is based on the cost price on the date of your fathers death. The element of shares held in your mothers name is based on the actual cost price. If however all the shares were held in your fathers name, then the CGT is based on the price as at the date of death.

RainyDay

Actually, on thinking about this again - I think your father has no CGT liability. Check the Revenue Guide to CGT (though I'm having some problems downloading it at present. It does say that there is no CGT liability arising from transfer of assets on death. So if the shares were willed from your father to your mother, she has no CGT liability relating to his period of ownership. She may well have a CGT liability from any gains in the share price which occured in her period of ownership. Again, if you plug the dates/prices into the CGT calculator mentioned above, it will work it all out for you.

ck1

Just to clarify - If the shares were held jointly prior to death, then there the CGT liability on 50% of the sale is based on actual cost (being the shares of the mother) and for the remainder 50%, the CGT liability is based on cost as at date of death (the 50% shares transfered on death)

grumpytrousers

Jesus wept. Thanks for your help'n'stuff. Shares were in joint names so there's no tax AFAIK on the going from mom'n'pop to mom, but there is on the sale.

Armed with your responses, a calculator, and the patience of a f**king saint, I'll give this a go the weekend...:D

RainyDay

grumpytrousers wrote:

Shares were in joint names so there's no tax AFAIK on the going from mom'n'pop to mom, but there is on the sale.

Hi - If the shares were in joint names all along, I don't think your father's death would have any impact - so your liability would be based on the original purchase price and the later disposal price. However, I'm not an expert - give Revenue a call, and if the amounts are large, consider getting professional advice.

ck1

RainyDay wrote:

Hi - If the shares were in joint names all along, I don't think your father's death would have any impact - so your liability would be based on the original purchase price and the later disposal price. However, I'm not an expert - give Revenue a call, and if the amounts are large, consider getting professional advice.

Sorry I have to disagree, the death does actually have an impact as the second life became beneficial owner of that element of share on that date. Effectively 50% of the realised value has a cost date as the date of purchase and 50% has a cost date as the date of death.