shares after death

tanmann

Howdy all

My question is if someone passes away on say the 1st may and have 1000 shares of a company and worth say 1000 pounds

the 1st of may value 1000 or 10th june after you obtain the probate and sell the shares share value 500/1500  up or down value

what share price is what IHT people want to know  ( the estate is worth over 325k)

the above is examples not actual figures

thanks for your time

Keep_pedalling

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Gains will not be subject to additional IHT, but could well be subject to capital gains tax,

You say that the estate is over £325k, is there any transferable NRD or residential NRB available?

badger09

tanmann said:

Howdy all

My question is if someone passes away on say the 1st may and have 1000 shares of a company and worth say 1000 pounds

the 1st of may value 1000 or 10th june after you obtain the probate and sell the shares share value 500/1500  up or down value

what share price is what IHT people want to know  ( the estate is worth over 325k)

the above is examples not actual figures

thanks for your time

It is the value at date of death which is relevant.

You wouldn't know the value of the shares 'after you obtain probate' as you need to state the value in order to obtain probate

tanmann

badger  i just put a guess to mate as i did not not the full extent but you get six months to pay any taxes i believe

My second question is if 100 of the shares where 100 pounds but would like to hold onto them

Is the process you pay the IHT then the shares are all yours,   then when you later go to sell the shares you may be liable for capitol gains tax ?

Keep_pedalling  i doubt there will be any rebate  but thanks

thanks all

badger09

tanmann said:

badger  i just put a guess to mate as i did not not the full extent but you get six months to pay any taxes i believe

My second question is if 100 of the shares where 100 pounds but would like to hold onto them

Is the process you pay the IHT then the shares are all yours,   then when you later go to sell the shares you may be liable for capitol gains tax ?

Keep_pedalling  i doubt there will be any rebate  but thanks

thanks all

Your questions are very confusing. Is this a hypothetical (ie made up) question?

When you applied for probate you should have been able to establish the value of the shares held at date of death, as that is publicly held information, unless the shares were in a private company. Similarly, if a property was involved and there was even a remote possibility that the estate may be liable for IHT, it is important to establish the correct value. 

Once probate has been granted, the executor distributes the estate in accordance with the will. If a beneficiary inherits shares and wants to keep them, any Capital Gains tax will be calculated on the increase in value (from the date of death IHT value) up to the date they're sold.  

relaxtwotribes

Keep_pedalling said:

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Is it not the case that you cannot claim a rebate of IHT on shares sold at a loss, whilst simply ignoring those shares that have gained in value?  Doesn't HMRC want to look at the whole picture again?  Just asking.

tanmann

badger09 said:

tanmann said:

badger  i just put a guess to mate as i did not not the full extent but you get six months to pay any taxes i believe

My second question is if 100 of the shares where 100 pounds but would like to hold onto them

Is the process you pay the IHT then the shares are all yours,   then when you later go to sell the shares you may be liable for capitol gains tax ?

Keep_pedalling  i doubt there will be any rebate  but thanks

thanks all

Your questions are very confusing. Is this a hypothetical (ie made up) question?

When you applied for probate you should have been able to establish the value of the shares held at date of death, as that is publicly held information, unless the shares were in a private company. Similarly, if a property was involved and there was even a remote possibility that the estate may be liable for IHT, it is important to establish the correct value. 

Once probate has been granted, the executor distributes the estate in accordance with the will. If a beneficiary inherits shares and wants to keep them, any Capital Gains tax will be calculated on the increase in value (from the date of death IHT value) up to the date they're sold.  

hi badger

the reason for the figure was i was told there was six months to submit a tax form and i did not fullly understand what i was doing (still dont really) 

so to recap when the person passes away that day is the value of the shares you will get from the share company and thats also the taxmans benchmark, if they pass at the weekend i assume its the monday figures.

With that is it the same if they had shares over in america too ?

Oh if i have a total of say 100 paper shares, their values go from one to five to ten etc and i find a recent statement for the same company but for say 90 shares, why could this be ??

yes this is all true unfortunately

lastly is there a one stop place where you can enter in someones details and find out exactly how many shares they have ?

thanks for your help

Keep_pedalling

relaxtwotribes said:

Keep_pedalling said:

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Is it not the case that you cannot claim a rebate of IHT on shares sold at a loss, whilst simply ignoring those shares that have gained in value?  Doesn't HMRC want to look at the whole picture again?  Just asking.

Gains are not ignored, they are covered by capital gains tax. If however it was property that showed a large gain in a short time  HMRC may challenge the original valuation so more IHT could be owed rather than CGT.

tanmann

Keep_pedalling said:

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Gains will not be subject to additional IHT, but could well be subject to capital gains tax,

You say that the estate is over £325k, is there any transferable NRD or residential NRB available?

Hi there

say the total value of estate is 400k  divided only between a sibling and two nephews  is the thresehold still 325k or .....

thanks

badger09

tanmann said:

Keep_pedalling said:

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Gains will not be subject to additional IHT, but could well be subject to capital gains tax,

You say that the estate is over £325k, is there any transferable NRD or residential NRB available?

Hi there

say the total value of estate is 400k  divided only between a sibling and two nephews  is the thresehold still 325k or .....

thanks

Threshold for IHT does not depend on number of beneficiaries.

May I suggest you read this instead of asking random unrelated questions

https://www.moneysavingexpert.com/family/what-to-do-when-someone-dies/

tanmann

badger09 said:

tanmann said:

Keep_pedalling said:

It is the value of the shares at the time of death that counts, although if the share fall significantly between then and when sold you can claim a rebate on IHT paid, provided they are sold within 12 mounts of the death.

Gains will not be subject to additional IHT, but could well be subject to capital gains tax,

You say that the estate is over £325k, is there any transferable NRD or residential NRB available?

Hi there

say the total value of estate is 400k  divided only between a sibling and two nephews  is the thresehold still 325k or .....

thanks

Threshold for IHT does not depend on number of beneficiaries.

May I suggest you read this instead of asking random unrelated questions

hi badger

have done most of that it was just the shares needs sorting

thanks