Readers’ forum: Shares

I have just taken on a new client who operates as a consultant. He has told me that he was given shares in a company a few years ago in lieu of a fee for work done for the company.

The company is unquoted and the shares involved amounted to significantly less than 0.5% of the total shareholding. He has told me that the value of the shares received was not included as a receipt in his accounts on the basis that they were free shares. There is no connection between my client and the company for whom the work was done. 

My client has now decided to sell his shares. The company has an estimated value of about £30m and we are instructed to prepare illustrative calculations of the capital gains tax which will be payable.

I would appreciate readers’ advice on how to determine the base cost...