What Is a Probate Shares Valuation?
Shares and investments must be valued at Open Market Value on the date of death, like every other estate asset — but uniquely, HMRC prescribes the exact method. Quoted shares are valued under the "quarter-up" rule: take the lower of the two closing prices quoted for the day, and add one quarter of the difference between the lower and higher prices. The result, multiplied across the holding, is the figure HMRC expects on the IHT411 schedule.
That sounds mechanical, and for a simple portfolio it largely is — but estates rarely stay simple. Deaths on weekends and bank holidays allow a choice of the nearest trading day on either side (the executor may use whichever produces the lower value). Unit trusts and OEICs are valued at the manager's bid price. Dividends declared but unpaid at death must be added. Shares held in ISAs lose their income tax wrapper on death but remain fully chargeable to Inheritance Tax — a point that regularly surprises executors.
Unquoted and private company shares are a different discipline altogether. There is no listed price, so the valuation must be built from the company's accounts, dividend history, asset base and the rights attached to the shareholding — and it may be reviewed by HMRC's specialist Shares and Assets Valuation (SAV) team. Professional valuation is essential here, both to establish a defensible figure and to apply any minority discounts correctly.
For an overview of when a valuation is required and what HMRC expects across every type of estate asset, see our complete guide to probate valuations.