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Market value on 31 March 1982

Can we just use nil value for market value of shares at 31 March 1982

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Hello

 

We have a valuation of hsares at 31 March 1982, which needs to be discounted for minority shareholding. 

 

My friend is very reticent to put any valuation in as the amounts are not big, and would prefer to play on the safe side and just insert nil. They were a gift. 

Is a nil valuation permissible? Getting a proper valuation may cost more than the tax saving inserting a figure other than nil would produce.

Your comments are appreciated and valued. 

 

 

Replies (5)

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RLI
By lionofludesch
21st Nov 2018 13:21

I wouldn't put nil down. If they genuinely weren't worth much, put down what you think they were worth. They must have had hope value or your friend wouldn't still hold then and be whittling about his tax liability.

You tell us very little and it's difficult to offer more concrete views. What does "not big" mean in proper numbers ?

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Replying to lionofludesch:
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By jasonowsky
21st Nov 2018 14:37

Hello, many thanks for your answer. The tax liability difference resulting from either being nil value or full value of shares is about £500 , which they are very willing to pay considering the shares were gifted by family several decades ago and they are shares in a close company (half of her shares were disposed three years ago and the disposal then was treated as income on the individual). This is the final disposal. A valuation of the shares at 31 March 1982 was undertaken by relative (a majority shareholder).

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By jasonowsky
21st Nov 2018 13:22

reluctant not reticent!

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paddle steamer
By DJKL
21st Nov 2018 13:33

If in doubt and given costs maybe just stick in nominal value of shares acquired and a white box note.

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By Duggimon
21st Nov 2018 14:39

Just put down your own valuation, if anyone wants to contest it they'll have to jump through the same hoops to get a better one and if the values are as low as you suggest, nobody will bother.

Nil value makes no sense because they were clearly worth something, pragmatism is your best approach.

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