Fiscal valuations of shareholdings in unquoted companies are required in a variety of circumstances:
- To agree with the tax position of a past event, such as: probate valuations for inheritance tax – purposes or valuations following the disposal of shares to determine capital gains tax
- To enable the development and implementation of tax planning strategies.
- To allow the purchase of shares (subject to the Articles of Association): by the company;
- Between member of a family; by the managers, or by an external party.
What we can offer our clients:
The fiscal valuation of unquoted shares is more an art than a science.
A range of valuation models can be used from net asset valuations to those based on earnings or dividends. The most suitable model will depend not only on the industry in which the company operates, but also on the attitude of the shareholders.
The size of the shareholding is also important. This can help determine the valuation model to be used and also the size of the discount that can be sought.
An understanding of HM Revenue & Customs (HMRC) and the Share Valuation Division might approach the valuation from their side and what discounts they will be likely to accept is also key to any valuation.
In summary, Smith & Williamson combines:
- A technical and experienced approach in valuing shares, with
- A personal approach of understanding the requirements of the shareholders.