IHTM18261 - Unlisted shares:
notification of agreement Val50
Unless SAV PCU have advised you of an initial agreement via the
mailpoint (
IHTM18211), they will notify you of the
finally agreed values by email or on a form Val50. The form
includes a Val50A section describing reliefs and instalments
agreed.
The notification or Val50 will state
- the company name, number and type of
shares and the value agreed at the date of valuation,
- any business (
IHTM25131) or agricultural (
IHTM24001) relief due and at what
rate,
- whether instalments (
IHTM30191) are available and if so,
whether they are with interest relief (
IHTM30363), and
- the agreed values of any amounts due to or
from the deceased to or from the company.
If you have asked for advice on any of these matters and it is
not included on the Val50, refer back to SAV for clarification.
Check whether
- the value of the shares is the same as
that offered on the IIHT412 and
- whether any relief is agreed at the rate
claimed on the IHT412.
Note any amendments in your file or on a Compass note and raise
an assessment as appropriate.
If business relief is agreed at 100%
- the Valuer should have considered all
aspects of the relief, including whether the shares were held for 2
years prior to the transfer. You can accept the position as final
unless the Valuer advises otherwise.
- the value of the shares themselves will
not have been ‘ascertained’ for IHTpurposes – see IHTM25021.
Penalties
If the shares are agreed at a significantly higher value than
that originally put forward by the taxpayer,
- consider investigating (in conjunction
with the Valuer) whether a penalty may be appropriate for delivery
of an incorrect account by negligence or fraud.
The penalty instructions are discussed at a separate section of
this manual. (
IHTM36001)
You need not consider a penalty if the uplift is simply
because of business or agricultural relief claimed, but
subsequently agreed not to be due, and the value of the shares
themselves is not significantly different to that offered.
