There are a number of occasions when an individual holding shares in an unquoted company may need to know their value. Usually it's when the shares are to be sold or transferred and at such time the Inland Revenue will normally need to agree the value of the shares.

Unfortunately, the valuation of unquoted shares is not a precise science and often HMRC will arrive at values that heighten the tax burden. Through taking specialist advice and opinion, a fair value of the shares can be determined and your case put forward. Often many thousands of pounds may hang on persuading the Revenue to accept your proposed valuation and long arguments lasting many weeks are not unknown.

Timing is also important. When dealing in shares, HMRC will only take into account facts that exist at the date of the transaction. Subsequent events, even though significant, will normally be ignored. Even the date that the company's accounts are signed off can be important.

If share transactions are contemplated early, advice may help to structure arrangements to reduce the tax consequences.

As with all tax mitigation, planning and taking sound, professional advice in time is key. So to see how you can save tax, please contact Bob Churchill, Head of Taxation, on 01622 213745 (email bob.churchill@dsh.co.uk.)