Shares and Assets Valuation Guide for Tax Purposes

March 31, 2026 · WOWERI

A guide to valuing shares and assets for tax purposes. Learn how HM Revenue & Customs values shares and assets in unquoted companies.

Introduction

Valuing shares and assets is a crucial aspect of tax planning. This guide will explore how HM Revenue & Customs values shares and assets in unquoted companies for Inheritance Tax and Capital Gains Tax purposes.

Valuing Shares

Valuing shares involves determining the value of shares on a specific date. This may be necessary for Inheritance Tax or Capital Gains Tax purposes. HM Revenue & Customs uses various methods to value shares, including:

• Income Approach: This method values shares based on expected income.
• Comparison Method: This method values shares by comparing them to similar companies.

Valuing Assets

Valuing assets involves determining the value of assets such as property, equipment, and intellectual property. HM Revenue & Customs uses various methods to value assets, including:

• Cost Method: This method values assets based on their original cost.
• Depreciation Method: This method values assets based on their residual value after depreciation.

Conclusion

Valuing shares and assets is a crucial aspect of tax planning. HM Revenue & Customs uses various methods to value shares and assets in unquoted companies. Understanding these methods can help you plan your tax liability and avoid potential errors.

Source: gov.uk