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Probate value of unquoted shares

Is a value always included for probate if estate goes to spouse?

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A client has sold shares inherited from her husband’s estate. I have a draft valuation report for the date of death which is a lot more than the amount received upon sale so am asking for HMRC to confirm the valuation to realise a capital loss.

I am trying to find out if the draft value was used for probate. Is it necessary to value shares in an unquoted company if they are inherited by a spouse?

I don’t have access to the probate documents and the wife is too drowned in admin to help. If one would have been included in the estate then I will pursue so any assistance would be helpful. Otherwise I will have to send the draft valuation even if it wasn’t used.

Thanks

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By chicken farmer
02nd Apr 2019 09:12

You will have to agree a valuation at the date of the husband's death. The 'draft' probate value is irrelevant - it will not have been agreed for IHT purposes as there was no need.

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Replying to chicken farmer:
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By Matrix
02nd Apr 2019 11:34

OK thanks so there would have been no probate value as no need?

Since a draft valuation report was prepared to open discussions with the other shareholder of the company then shall I send this to HMRC? Unfortunately it was never finalised and then the negotiations broke down and my client just accepted whatever she could to move on.

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Replying to Matrix:
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By chicken farmer
02nd Apr 2019 12:45

Your first paragraph doesn't make sense. If the draft valuation is less than the amount received on sale, how can you claim a capital loss?

Also is a capital loss going to be of any use to widow?

Does the draft valuation proceed on the basis of what a hypothetical prudent purchaser would pay for the holding in question?

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Replying to chicken farmer:
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By Matrix
02nd Apr 2019 13:12

Sorry I have changed my first para above. The amount received was a lot less than the draft valuation.

She has a property portfolio so can use the loss. Also her husband built up this business for 30 years before his sudden death so hoping HMRC will agree that the value on death was higher than the amount received.

Yes the draft valuation is a comprehensive report from valuation experts and has various discounts and comes out with a value for the widow’s shares.

Thanks for any thoughts.

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Replying to Matrix:
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By chicken farmer
02nd Apr 2019 13:34

You say that the valuation report was only in draft. In that case I would approach the valuation experts to confirm that their opinion does not need any revision and that they are happy for that valuation to be submitted.

You may of course need their assistance with any response from the Revenue.

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