136 Part 3
Inheritance tax
the last day when the stock exchange was open before the person died; or
the rst day when the stock exchange was open after the person died.
Compare the prices of the two days and take the lower value.
If the deceased owned many shares, or relatively unknown shareholdings,
it might be benecial for the personal representatives to obtain a profes-
sional valuation from a stockbroker.
Unquoted shares and securities
Unquoted shares are usually those in a personal company. They are not
listed on the stock market, hence why they are referred to as unquoted
shares and securities. Most family companies or private companies are
Because they are not listed, they are not generally available to the general
public and are usually owned by the people running the companies.
Unquoted shares and securities are more difcult to value, because it is not
possible to look at the values of the shares on the listed stock exchange as
you can with the quoted shares and securities. Valuation will depend on
the type and size of the company and how tradeable they are on the open
market. The value of unquoted shares and securities will be based on the
following factors:
company accounts;
company turnover and cashow;
the company’s dividend policy;
the value of the company’s assets;
the goodwill of the company;
the economic climate;
the size of the shareholding in relation to the whole issue of shares;
shareholder voting rights;
the company’s dividend policy.
Sometimes, and depending on the size of the company, the company secre-
tary or directors will monitor the value of the company shares at frequent
intervals and may be able to provide a reasonable estimate of the value of
the shares. However, this is not always feasible and it may be necessary to
seek professional advice to ascertain the correct valuation of the shares.

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