Value of shareholding coming out of trust

A trust is being wound up and client wants to know the market value of the shares.

Didn't find your answer?

I am dealing with a trust that has a 32% shareholding in a private company.  The trust is being wound up and distributed to two beneficiaries equally.  We'll be claiming holdover under s260 but the client wants to know what the base cost for the beneficiaries will be.  Will each beneficiary have a base cost equal to a 16% shareholding or will it be equal to half of a 32% shareholding at date of winding up? I've explained that we only need to supply estimated figures and the trustees are not bound by these figures but he would still like to know the answer.  I assume the latter but haven't read enough to be sure - is it linked transactions?

Replies (4)

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By Tax Dragon
14th Dec 2023 17:43

You seem to be talking about value at winding up as if this formed the base cost. Do you know what s260 does?

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Replying to Tax Dragon:
By More unearned luck
14th Dec 2023 18:24

Perhaps the beneficiaries consider that the shares are worth less now than when they went in? As you know, a holdover election can't be made if there is no gain to holdover!

But really I agree, there seems to be a lack of understanding.

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By jenhen84
21st Dec 2023 08:40

I've been dealing with s260 IHTA 1984 for more than 15 years so I do think I understand what it does. Thanks for the condescending replies. Much appreciated. Think I'll head to another forum where posters are respected. Merry Christmas.

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Replying to jenhen84:
By stepurhan
21st Dec 2023 09:01

Then you could prove it by explaining what it does and why you consider it relevant (or not) to your question.

Claiming knowledge without showing it and flouncing out just makes you look bad. You're also throwing away the chance to learn from some pretty knowledgeable regulars here.

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