Share Valuation

ferger

My Dad's estate has holdings of a number of different shares, mostly FTS100 / 250. All of them are on personally held certificates, rather than through nominees, so at the weekend I despatched umpteen letters to umpteen registrars with umpteen death certificates, asking for confirmation of the holding and any dividends due at DoD.

I'm conscious that I have to value these at DoD on the IHT400 when I get to that point, and it occurred to me that there were probably web based services around that would do that for me. A quick Google turned up netsharevalue.co.uk, which seems not ridiculously priced at £3.65 per holding. Has anyone experience of using services like this? Strikes me that this - and the basis of the calculation - is public domain info, and there might be more straightforward ways to get hold of it...

no1catman

Check out the Financial Times - you'll need the edition the day after the DoD - which will give you that day's prices.


I used to do Stock & Share valuations for Probate - but that was forty-five years ago!
I remember the basis was different from the pricing for standard valuations. Perhaps a call to the local Tax Office for advice.


How did he buy & sell shares, was it on-line or through a broker?
They could do the valuation, though perhaps depends on what they'd charge!!?
HTHs

g6jns_2

You need to find the mid price for each holding. The information may not be available without subscription. Somebody will now prove me wrong��!

ferger

Hmm. My understanding was that it was a little more complex than that - specifically, that listed shares should be valued on the basis of the lower of:

• Closing (mid) price for the day and add a quarter of the difference between buy and sell at close
• Median between highest and lowest price recorded for the day

Necessarily, you also need to account for a share being ex-div on the DoD.

Given the faff of calculating this, I could live with paying £3.65 per quote - I just wondered whether anyone offered it pre-calculated for free somewhere!

g6jns_2

ferger wrote: »

Hmm. My understanding was that it was a little more complex than that - specifically, that listed shares should be valued on the basis of the lower of:

• Closing (mid) price for the day and add a quarter of the difference between buy and sell at close
• Median between highest and lowest price recorded for the day

Necessarily, you also need to account for a share being ex-div on the DoD.

Given the faff of calculating this, I could live with paying £3.65 per quote - I just wondered whether anyone offered it pre-calculated for free somewhere!

The FT prices are end prices. Unless the estate is going to be over the IHT threshold then they will auffice. Otherwise you need the mid prices.

ferger

It will be over the IHT threshold. But, it seems to me, the closing price in the FT - which will be the mid-price, unless they quote Buy and Sell, is not enough: You need Buy/Sell - and you need to know the high/low for the mid-price during the days trading...

Which is why I'm inclined to pay for it, assuming these services do calculate it correctly. It's nothing that a bit of Excel can't deal with, but you do need the right data in the first place...

g6jns_2

ferger wrote: »

It will be over the IHT threshold. But, it seems to me, the closing price in the FT - which will be the mid-price, unless they quote Buy and Sell, is not enough: You need Buy/Sell - and you need to know the high/low for the mid-price during the days trading...

Which is why I'm inclined to pay for it, assuming these services do calculate it correctly. It's nothing that a bit of Excel can't deal with, but you do need the right data in the first place...

It may be worth ringing. Local stockbroker as they may provide an all cost for doing the job.

nom_de_plume

I used this site to get free valuations recently London Stock Exchange
The estate I was dealing with had shares worth circa £20,000 and was liable for considerable IHT.
The values were accepted without question.

getmore4less

IME on-line valuations were acceptable values for HMRC.

I used HL and yahoo historic tables.