Company owns an commercial investment property recently valued at £1m. There is no debt, so the net assets of the company are c£1m also.
Father owns 55% of the shares, the other 45% being owned by an estranged uncle.
Father is widowed and has other assets in his estate that are in ecxess of the Nil Rate Bands. He is minded to gift shares with a value of £331k into a dicsretionary trust for his children / grandchildren.
Valaution - A property investment company is normally valued on an asset basis... Taking this further, on a simple pro rate basis (with no discounting) this would suggest he could gift a 33% shareholding. However, the loss to donor principle is to considered. Ultimately he will be gifting control of the company. Can readers suggets an acceptable IHT valuation and therefore an amount of shares to gift into trust in these circumstances?
(CGT relief under s260 is to be claimed)