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HMRC internal manual

Shares and Assets Valuation Manual

Inheritance Tax: VAL70 (Death)

The VAL70 is produced electronically via SEES and should come to SAV by email. The boxes at the top of the VAL70 provide the valuer with details of the company, valuation date, transferor and so on.

The name of the IHT caseworker may not be given.  You may need to send your reply to one of the IHT mailboxes.

Section 1 applies as for VAL 70 (Lifetime). See this chapter SVM108030.

Section 2 will show any shares which are known to be part of the estate but which are not taxable on the death. These shares should be taken into account in determining the size of the holding to be valued, even though part of that holding (the part in Section 2) is exempt. Section 2 will also include shares in which the deceased had an interest in possession in settled property which was subject to Estate Duty on the death of his/her spouse (paragraph 2, Schedule 6 Inheritance Taxes Act) or civil partner. Even though such shares are not taxable themselves, they will be taken into account in valuing the shares which are taxable on the death.

Section 3 will show details of any holdings of shares or securities in the company which the IHT caseworker knows to have been held by the spouse/civil partner. If no shares are shown but the deceased is shown as having a spouse/civil partner, you should investigate whether the spouse/civil partner had shares or securities in the company. Any shares or securities owned by the spouse/civil partner have to be taken into account as related property in determining the size of the holding to be valued - s.161 IHTA - though, as with exempt shares, the spouse’s/civil partner’s shares are not themselves subject to tax on the death.

Section 4 applies as for the Val 70 (Lifetime).

Sections 5 and 6 show sums due to or from the company. ‘Nature of debt’ means ‘loan account’, ‘unpaid dividend’ and so on.

Section 7 shows if this valuation is the only outstanding matter on file.

Section 8 shows the aggregate chargeable transfers (in other words the taxable value of the death estate plus the taxable value of lifetime transfers made within 7 years of the death). This section also shows the chargeable threshold at the date of death, in other words whether the case is taxpaying on present figures. If 100% BR has been claimed for the shares, the amount reflected for them in the ‘Aggregate Chargeable Transfers’ figure will, of course, be nil.

Section 9 shows if a valuation or any other relevant documentation has been supplied by the parties.

Section 10 in addition, where there have been transfers of shares by the same transferor in other companies, made at any time, this section will give the company names and CRNs if known. Where other valuations are still in progress, the present valuation will normally be divided to the same valuer as a multi case, in the interests of cost-effectiveness and customer service.  If this is not done, the matter should be referred to the Team Leader to consider whether re-allocation is needed.  The multi procedure also applies to lifetime and settlement references.

Section 11 shows any other relevant information disclosed in the IHT Account.

  Additional Guidance: SVM150000