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HMRC internal manual

Shares and Assets Valuation Manual

From
HM Revenue & Customs
Updated
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Inheritance Tax: Sub-Threshold Cases - Death

In many instances, unquoted shares will now qualify for 100% BR when the death is on or after 6/4/96, so this paragraph applies only to cases where 100% BR does not apply.

Where the value offered is acceptable it should be accepted on a normal unqualified or ‘without prejudice’ basis, as appropriate. Otherwise if Sections 8 and 9 of the Val 70 (Death) indicate that the threshold covers and the valuation is the only outstanding matter valuers should first check with the IHT caseworker that there have been no further developments. The IHT caseworker should then be notified that the value will not cause the threshold to be exceeded. At the same time valuers should write to the agents informing them that on the basis of the information we have, it appears that the IHT threshold will not be exceeded, and that therefore it is not proposed to negotiate or agree a value for the shares on this occasion. In such cases you should make it clear that this course of action is without prejudice to any other valuation required for any HMRC purpose and in particular that the value has not been ‘ascertained’ for IHT purposes within the meaning of s.274 TCGA 1992. Valuers need to bear in mind that where it is clear the threshold will not be exceeded, the date of death ‘value’ is often inflated so as to attempt to set a higher acquisition cost for CGT purposes.

In other cases where the threshold appears to cover but Section 8 of the Val 70 indicates that there are other outstanding matters, you should notify the IHT caseworker that the threshold will not be exceeded on the aggregate total shown on the Val 70 and enquire whether negotiations need to be pursued. Wherever possible an estimate of the maximum value of the shares should be supplied. If the IHT caseworker then confirms that negotiations need not proceed, a letter should be sent to the agents in similar terms to those at paragraph 2 above.
 

  Additional Guidance: SVM150000