Service/Compliance procedures: sale price unacceptable
FACET check share prices against the ‘Business Done’ range of prices. This gives the entire range of prices within which a particular share is traded on each day.
If the price is outside this range FACET will note the shares as ‘Outside Business Done range’ on a form 516. You will need to check the date of sale and/or sale price with the taxpayers or agents. This can usually be done by telephone.
If incorrect information was included on the form IHT 35 you should correct the form, using red ink, and return it to FACET with a covering 516 to advise them of the correct date of sale/price. But if the taxpayer or agent maintains that the information on the IHT 35 is correct you should ask for copies of the contract note relating to the sale.
When you receive the contract note you should
- check the contract note to ensure that the taxpayer or agent has included the correct information on the IHT 35
- make corrections to the IHT 35 in red ink where necessary
- forward the IHT 35 with the contract note to FACET for the value to be re-checked.
If the sale was not on the open market, you should refer the claim to Technical (IHTM01081) for advice.