Gifted shares cost

When you receive gifted shares, the cost basis for tax purposes is generally the value at which the donor acquired them. However, for taxability upon receipt, gifts without consideration exceeding £50,000 are taxable under Section 56(2) of the Income Tax Act. As you received shares from your uncle, you likely fall under an exemption unless the fair market value exceeded £50,000. It's crucial to maintain a gift deed for documentation. If you decide to sell, the cost basis will be relevant for calculating capital gains tax.