IHTM18094 - Valuation: UK
government securities and municipal securities
Municipal
As opposed to shares in a company, securities do not give rise
to voting rights. Securities are loan capital, not part of the
issued share capital but part of the organisation’s
borrowing. Unlike bank overdrafts, or other types of borrowing from
the banks and financial institutions, loan capital may be held by
individuals and can be bought and sold in the same way as shares.
Each type of loan capital is a form of security. The security may
be in the form of a debenture or Loan Stock/Notes.
- Where listed, securities are valued in
much the same way as shares (
IHTM18093) on the SEDOL (
IHTM18092) listings.
- Refer to the separate instructions if you
have a valuation of unlisted securities (
IHTM18280) in a company whose shares
are listed.
Government
Similarly, the government issues loan capital as part of its
borrowing capacities.
- The security value should be fully listed
on the SEDOL.
- Watch whether any Treasury Stocks are
excluded from Inheritance Tax under IHTA84/S6 (2) in cases of
foreign domicile (
IHTM13001).
Both municipal and Government securities may have
additional quotationmarkings (IHTM18098), which affect their value.
