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HMRC internal manual

Inheritance Tax Manual

From
HM Revenue & Customs
Updated
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FACET procedures: suspended or cancelled shares

You will get requests from caseworkers asking you to check or confirm whether shares were either

  • suspended at the 12-month anniversary of the date of death, or
  • cancelled within 12 months of death.

This information can be checked in Extel and supplements.

If the deceased died after 16 March 1992 then the shares that are suspended at the 12-month anniversary of the date of death should normally be entered at the ‘grey market’ value in column B of form IHT 35. But if the loss on the suspended shares is substantial (IHTM34156) you should ask the caseworker to refer the claim to SAV In addition you must refer any private sales (IHTM34151) of suspended shares to TG (IHTM01081).

Cancelled shares are valued at £1 in column B for the purposes of this relief.

In all cases when you are asked to consider suspended or cancelled shares you should ask to see the IHT 35.