SVM101020 | Introduction: Quoted Shares

Whilst Shares and Assets Valuation (SAV) mainly deals with the valuation of shares that do not have a listing on a recognised stock exchange, there are occasions when we have to consider the value of quoted shares.

Inheritance Tax risk assessors may ask SAV to consider issues such as:

• CGT cases where it is considered that there are ‘special circumstances’ in consequence of which the prices quoted are not a proper measure of the market value (Section 272(3) TCGA 1992).

• Claims that by reason of its size a holding should have a special reduction in price. (Such reductions are precluded by the IHT and CGT legislation.)

• All cases where any individual holding of shares with a full listing is valued at over £10,000,000 and / or a holding of shares listed on a junior market exceeds £100,000 in value.

• Suspended quotations.

• Cancelled quotations, unless and until it is clear that the company is now unlisted and the former quotation is irrelevant for valuation purposes.

• Claims that shares, following suspension or cancellation of a quotation, have become of negligible value for CGT.

SAV’s procedures for dealing with valuation issues relating to quoted securities for CGT purposes are explained in Chapter 107 of this Manual - CGT Procedures. SVM107000.

Additonal Guidance: SVM150000