ACCA Taxation F6 Practice Exam 2026 – Complete Study Resource

When quoted shares are given away, they are valued at the market value, specifically the mid price quoted on the date of disposal. This approach ensures that the valuation reflects an accurate and fair representation of the shares' worth based on current market conditions at the time they are transferred. Using the market value provides an objective measure that considers any fluctuations in the share price leading up to the disposal date, which is crucial for determining any potential capital gains tax implications for the donor.

The other methods of valuation, such as the original purchase price or nominal value, do not accurately reflect the current market conditions and would not provide a fair value for the shares at the point of transfer. Additionally, using the highest price in the last month would not consider the most recent and potentially more relevant pricing information on the disposal date itself. Therefore, choosing the mid price quoted at the time of disposal aligns with the principles of fairness and accuracy in valuation for taxation purposes.