IHTM18191 - Unlisted shares: completing Val70 (settlements)

Val70(settlements) is a version of the paper form in yellow. The notes on the reverse of the top copy of the form are for SAV’s guidance, however you will find that it is worthwhile reading them.

Send both pages of the form to SAV.

File records

PC & S – simply note the issue of Val70 in the Compass notes box. There is no need to keep a copy of the form.

CG – make copy of the form and retain it on your file for file review purposes.

Proportionate charges before the first TYA (IHTM42114)

• Where it is clear that the value for rate is sub-threshold consider whether you need to refer to SAV at all for an “in isolation” value. Is any agreed lifetime transfer value a sufficient guide?
• In other (sub-threshold) cases, use your judgement in deciding whether to refer to SAV, bearing in mind that an “in isolation” value may only marginally affect the rate of tax.
• Only complete section3 in cases where you have decided that a valuation is necessary, and the property comprised in the settlement at the outset or added to it includes shares in the unlisted company. The valuation date is the date of transfer into settlement.
• If the property subject to the proportionate charge does not include shares in the unlisted company, cross-through sections 1 and 2, and only complete section 3.
• Box 3(a) - The figure which you insert is the historic value of the shares (if you know it), or if you do not know the historic value, show the agreed value in lifetime file situations only (if a value is agreed).
• Box 3(b) - The value you insert in sub-threshold cases is the current threshold, minus any other figures (other assets and PLCT for instance), that reckon for rate calculation.
• You will see from Note 4 on the reverse of the form that SAV may ask you to recalculate the rate of tax where they consider that the 3(a) value should be higher.

• In TYA cases, always show the rate of tax as 6%. If there is a reduction for property not held for the full ten years, provide an explanation in the notes box.
• “Other” types of charge here might include flat rate charges.
• In proportionate charge cases before the first TYA, where the transfer does not include unlisted shares entitled to 100% business relief, delete the word “provisional”. Where the only property transferred is unlisted shares which are entitled to 100% business relief, write n/k in the rate box.