Business and Share Valuations
We are increasingly being asked for our professional opinion in respect of business and share valuations. Our directors have built up years of experience in advising on such valuations and some are associate members of the Society of Share and Business Valuers. We understand the need to step back from our historical involvement as Accountants to your business and take a professional and objective view on its value. We can advise on the distinct differences that a tax based or commercial valuation will give and have negotiated such share and business valuations successfully with HMRC in the past. We can also advise on valuations for businesses for whom we do not act.
A tax based valuation may be required in the following situations:
- on the death of a shareholder, when inheritance tax and capital gains tax issues may be relevant and commercial considerations may also be necessary
- for base cost purposes for capital gains tax, whether the shares were held at 31st March 1982 or acquired subsequently
- for calculating goodwill on incorporation for capital gains tax
- for employment income purposes, where employees are granted options under approved or unapproved schemes, or awarded shares outright, for consideration or as a gift, by subscription or otherwise
- for gifts or sales of shares
- on events in trusts which give rise to tax charges
- for the purchase of own shares by a company
- for group reorganisations
- the inheritance tax implications of holdings of shares and on business property relief and excepted assets
A commercial or ‘non-fiscal’ valuation may be required in the following situations:
- under provisions in companies’ Articles of Association
- under shareholders’ or other agreements
- for purchases and sales of shares, e.g. re-organisation/disposals of family members’ shares
- for purchases by companies of their own shares
- in disputes between shareholders/partners
- on petitions to the Court by “unfairly prejudiced” shareholders under the provisions of the Companies Act
- for financial settlements on divorce
- for inclusion in accounts of companies, etc
- for purchases and sales of entire businesses
Should you require a professional opinion on a share or business valuation, please contact us for a quotation.