IHTM18022 - PC&S share checks: listed stocks and shares

• (This text has been withheld because of exemptions in the Freedom of Information Act 2000)

Normally if the price shown for a listed share does not fall within the price range for the date of death, PC&S will calculate and show the ¼ up price as the appropriate value to be adopted. Occasionally a mid-bargain price is used. The valuation instructions (IHTM18093) explain how these are calculated.

Dividends and interest

• PC&S will check for dividends if the original valuation is longer than one page and no dividends are shown.
• In all cases where PC&S check for dividends they (or a designated PC&S caseworker in Edinburgh) will also check for capitalisation(IHTM18099) and rights issues (IHTM18100).
• If dividends are omitted, PC&S will mark the shares “XD” (IHTM18098) and indicate the amount of the dividend. If interest is omitted on stocks or securities they will also quantify this for you.
• Where dividends (or interest on securities) are not known PC&S will flag this up for you to pursue with the taxpayer if the amounts involved are likely to be worth pursuit.

If the amendments to shares, dividends and interest are above de minimis limits, (IHTM18042) inform the taxpayer of the appropriate amendments to the values offered and re-assess as appropriate.

Note

If there has been a capitalisation issue or rights issue, it may not be clear whether the additional shares are reflected in the estate. If it is unclear, PC&S will look at the terms of the issue to estimate the maximum potential capital adjustment. If this is worthwhile, they will mark the shares “XC” (IHTM18099) or “XRts” (IHTM18100) as appropriate, and advise you of the details so that you can raise the issue with the taxpayer.