KEY POINTS
- What is being valued will depend on the purpose of the valuation.
- The rules as informed by case law for tax valuations.
- What information must be taken into account?
- HMRC’s published valuation guidance.
- Differing approaches to valuations.
Cash is king they say and in arm’s length transactions in the real world the price paid is usually a reliable indicator of value.
However there are occasions in tax – say calculating the inheritance tax on an estate or the gain on a gift of unquoted shares – where no cash changes hands but we still need to arrive at a value to compute a liability.
Such occasions are not a daily occurrence for most high street practices and may be outside of their comfort zone. This...