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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Stocks and shares: valuation: PEPs

A PEP is a financial product, usually bought from a bank or building society, by which a personal investor can hold a portfolio of shares with Income Tax benefits. It may also contain uninvested cash and undistributed dividends (IHTM18110).

If the deceased owned a PEP, the taxpayer will probably have obtained a valuation from the PEP manager. The value of the shares in the PEP should correctly be included on the IHT411 (IHTM18011) but disallow any deductions for manager’s fees. If the taxpayer has not obtained a valuation from the PEP manager the shares should be listed individually and valued in the same way as other shares.

Any uninvested cash held in the PEP should be included with the value for the shares.