• Service: Tax, Global Indirect Tax, Global Mobility Services, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 7/7/2014

United Kingdom - Proposal for determining value of shares, securities  

July 7: HM Revenue & Customs (HMRC) published draft guidance concerning a change to the rules for determining the market value of shares and securities for tax purposes.

The draft guidance aims to simplify the way that the market value of shares in listed companies is determined for tax purposes.

As proposed, taxpayers would determine the market value of shares by reference to the closing price of the shares on the relevant day—rather than using the current “quarter-up” method of calculation. The closing price method requires no calculation, and is freely available from newspapers and websites.

The draft guidance also would provide an equivalent provision in relation to the determination of the value of “strips”—i.e., that the market value would be the “mid-price” (the mid-point between the closing “buy” and “sell” prices quoted).

A consultation on this draft guidance closes 22 August 2014.

Read a July 2014 report(PDF 756KB) prepared by the KPMG member firm in the UK: Weekly Tax Briefing (4 July 2014)

This KPMG report also includes discussions of the land and buildings transaction tax sub-sale development relief and discussions of indirect tax tribunal decisions.

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