Where a death estate is partially exempt, and the will provides
for the number of unquoted shares taken by non-exempt beneficiaries
to be determined by reference to the value placed on them, you
should consult the IHT caseworker as to what our approach should
be. Shares and Assets Valuation (SAV) would not generally wish to
be involved in a valuation if this could not affect the amount of
tax payable. On the other hand, if shares are appropriated at a
very low value in satisfaction of a legacy linked to the IHT
threshold, the market value of the shares might be far in excess of
the nominal amount of the legacy. Where 100% BR is in point, of
course, there will be no need to agree a value. Moreover, the net
value of the shares (after reliefs) will be nil and will thus not
have any effect on the amount payable under the pecuniary legacy.
A typical example is a bequest of such number of shares as,
after agreement with SAV, will keep the taxable estate under the
tax threshold. Such instances are, however, much less common than
in the days when 100% BR was not available.
| Additional Guidance: SVM150000 |
