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HMRC internal manual

Inheritance Tax Manual

Stocks and shares: valuation: UK government securities and municipal securities


As opposed to shares in a company, securities do not have voting rights. Securities are loan capital, not part of the issued share capital but part of the organisation’s borrowing. Unlike bank overdrafts, or other types of borrowing from the banks and financial institutions, loan capital may be held by individuals and can be bought and sold in the same way as shares. Each type of loan capital is a form of security. The security may be in the form of a debenture or Loan Stock/Notes.

  • Where listed, securities are valued in much the same way as shares (IHTM18093) on the London Stock Exchange (IHTM18092) listings.
  • Refer to the separate instructions if you have a valuation of unlisted securities (IHTM18280) in a company whose shares are listed.


Similarly, the government issues loan capital as part of its borrowing capacities. 

  • The security value should be fully listed on the London Stock Exchange.
  • Watch whether any Treasury Stocks are excluded from Inheritance Tax under IHTA84/S6(2) in cases of foreign residence/domicile (IHTM27241).

Both municipal and Government securities may have additional quotation markings (IHTM18098), which affect their value.