Appropriation of shares

I am dealing with an estate where part of the residue is passing to various charities.

For CGT purposes it is intended that various shareholdings will be appropriated prior to sale. Is it possible to appropriate a portfolio (managed fund) and/or stocks and shares ISA where a gain is likely?

Many thanks

Kathy Melkerts

Melkerts Solicitors


Simon Northcott

s.62(4) TCGA 192 applies to the appropriation of assets to a beneficiary of a estate, to the effect that they acquire such assets at “probate” value for CGT purposes, regardless of the value used for the appropriation.

Where the shares are exiting an ISA held by the deceased, my understanding is that the above will still apply, unless it is a qualifying ISA that continues to benefit from the ISA exemptions whilst in the estate. In which case, upon the assets exiting the ISA, the usual ISA rules will apply and the CGT acquisition value will be the value as at the date of exit, with no taxable gain on the personal representatives.

Paul Saunders