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Where Taxpayers and Advisers Meet

Private Limited Company value 1999

JohnnyPick
Posts:3
Joined:Tue Jan 28, 2025 2:04 pm
Private Limited Company value 1999

Postby JohnnyPick » Tue Jan 28, 2025 2:08 pm

Hi,
I inherited Shares in an unquoted Private Limited Company in 1999, There's a chance I may be able to sell the shares soon. How do I value the Company/Shares in 1999 for CGT purposes?

Botcamper
Posts:4
Joined:Fri Oct 21, 2022 1:39 pm

Re: Private Limited Company value 1999

Postby Botcamper » Wed Jan 29, 2025 4:18 pm

Were the shares not valued for probate/IHT purposes in 1999?

JohnnyPick
Posts:3
Joined:Tue Jan 28, 2025 2:04 pm

Re: Private Limited Company value 1999

Postby JohnnyPick » Thu Jan 30, 2025 8:22 am

Hi,
in short, I don't know. I don't believe they were subject to IHT at the time, so not sure if a value was needed for Probate.

If there is a Probate figure, what's the best way to find it. Please bear in mind these were inherited 26 years ago.

If there isn't a Probate figure, how do I value the Company/Shares in 1999 for CGT purposes?

AGoodman
Posts:1931
Joined:Fri May 16, 2014 3:47 pm

Re: Private Limited Company value 1999

Postby AGoodman » Thu Jan 30, 2025 11:26 am

Starting position would be to ask the executors/administrators of the estate if they have kept the records. If not, any solicitors may well have retained probate files as they are often required in situations like this.

If not, you can ask HMRC if they have kept any IHT return in their archives

Otherwise you need to value it from available information. The company may have kept its full accounts. Some accounts should be on Companies House and, although these may be very limited in scope (such as just a balance sheet), it is better than nothing.

AGoodman
Posts:1931
Joined:Fri May 16, 2014 3:47 pm

Re: Private Limited Company value 1999

Postby AGoodman » Thu Jan 30, 2025 4:04 pm

nb. you can see if a grant was taken out here: https://www.gov.uk/search-will-probate

If there's a grant then some kind of valuation exercise would have had to have been undertaken, even if only in summary because the estate was exempt and/or business property relief applied.

JohnnyPick
Posts:3
Joined:Tue Jan 28, 2025 2:04 pm

Re: Private Limited Company value 1999

Postby JohnnyPick » Thu Feb 06, 2025 12:36 pm

Hi,
Probate docs came through with no details of assets. They just confirmed the estate wasn't valued above a certain amount.

Executor died 8 years ago. No paperwork has survived.

We do have the reporting accounts for the years the shares were transferred.

How would HMRC value a company based on the accounts from 26 years ago. Is there a Rule of thumb/formula?

AGoodman
Posts:1931
Joined:Fri May 16, 2014 3:47 pm

Re: Private Limited Company value 1999

Postby AGoodman » Fri Feb 07, 2025 11:25 am

- The grant doesn't value individual assets but if a grant was taken out, some form of valuation would have been conducted at the time
- HMRC may still have a copy of the IHT return that was submitted for probate purposes. It's worth asking them, particularly as it would be embarrassing if you put in a value much lower than the one they have in store (admittedly fairly unlikely that they would both check and find it). But mostly because it would save you some grief/expense
- HMRC don't value it initially, you have to value it or instruct a valuer yourself. you can google share valuations.

Shares are valued in different ways depending on the nature of the business. It would usually be one or a combination of:

- asset values
- dividend history / expectations
- multiples of profits (by comparison to sales of similar businesses)


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