How to Value Shares for Probate UK (2026): Quoted, Unquoted & ISA Shares

Quoted shares — shares listed on a recognised stock exchange such as the London Stock Exchange (LSE) Main Market, AIM, or an overseas exchange — are valued for probate and IHT purposes using the 'quarter up' rule prescribed by IHTA 1984 s.272 and HMRC's Share Valuation Manual: (1) The quarter up rule: the value of a quoted share for IHT purposes is the lower quoted price PLUS one-quarter of the difference between the lower and higher quoted prices on the date of death. The formula is: Value = Lower price + ((Higher price − Lower price) / 4). Example: if a share was quoted at a low of 400p and a high of 440p on the date of death, the quarter up value is: 400 + (440 − 400) / 4 = 400 + 10 = 410p per share; (2) Where to find the historic price data: the Financial Times historical prices database (ft.com); the London Stock Exchange historic price tool (londonstockexchange.com); ShareScope or Morningstar for detailed historic data. You need the date of death, and if the markets were closed on that day (weekend or bank holiday), use the prices from the last working day before the death AND the first working day after, and use whichever figure is lower (the 'halfway' between the two sets of quarter-up values); (3) Bank holidays and weekends: HMRC's practice where the death falls on a day the market is closed: take the quarter-up value for the last day before death AND the quarter-up value for the first day after, then take the lower of the two; (4) Where to find share registrations: the deceased's share certificates, broker accounts, dividend confirmation letters, or a search of the share register. For CREST (paperless) holdings, the broker or nominee will confirm the holding; (5) Recording the values: record the number of shares, the share name and ISIN number, the date-of-death quarter-up price per share, and the total value. Include this in the IHT400 Schedule IHT412 (listed stocks and shares).

Unquoted shares — shares in private limited companies, partnerships, or businesses not listed on a recognised stock exchange — are significantly more complex to value than quoted shares: (1) No market price: because unquoted shares are not publicly traded, there is no daily price. The value must be determined by reference to the company's underlying assets, earning capacity, and what a hypothetical purchaser would pay for the shares in the open market on the date of death (IHTA 1984 s.160); (2) HMRC Shares Valuation (SV): HMRC has a specialist team (the Shares Valuation team, part of HMRC Specialist PT) that will review and negotiate the value of unquoted shares submitted in the IHT return. For privately held companies, it is common to submit a valuation from a qualified accountant or tax adviser (a specialist in share valuation) alongside the IHT return; (3) Approaches to valuation: (a) Asset basis: net asset value of the company (sum of assets minus liabilities) — typically used for property holding companies and investment companies; (b) Earnings basis: based on a multiple of the company's maintainable profits (P/E ratio methodology) — used for trading companies; (c) Dividend yield basis: based on the capitalised value of historic dividends — rarely used alone; (d) A combination of the above, weighted by the nature of the business; (4) Minority vs majority shareholding: a minority shareholding (below 50%) in a private company is valued with a discount for the lack of control and lack of marketability — typically 30–50% off the pro-rata net asset value. A controlling shareholding attracts a lower discount or no discount; (5) Business Property Relief (BPR): qualifying unquoted shares in a trading company may attract 100% BPR relief, reducing their IHT value to nil. However, HMRC scrutinises BPR claims on shares with significant non-trading (investment) assets. See `business-property-relief-uk` for more detail; (6) HMRC negotiation: HMRC Shares Valuation will often negotiate the value submitted. It is common for the agreed value to differ from the initial submission. Keep all company accounts, management accounts, and valuation methodology documentation to support the negotiation.

Different types of collective investment vehicles have specific valuation rules for probate: (1) Stocks and Shares ISAs: ISA holdings are valued at the bid price (the price at which the fund manager would buy back units from an investor) on the date of death. If the ISA holds cash, the full cash value is included. For ETFs held within an ISA, use the quarter-up rule (same as quoted shares). Request a 'date of death valuation' from the ISA provider — they will calculate and confirm the exact figure. Note: ISAs retain their tax-free status during estate administration for up to 3 years from the date of death (the 'continuing bonds of a deceased ISA holder' or 'inherited ISA' rules). The surviving spouse or civil partner can claim an Additional Permitted Subscription (APS) equal to the value of the deceased's ISA; (2) Cash ISAs: the full cash balance at the date of death, including accrued interest to that date. Request a written balance confirmation from the provider; (3) Unit trusts and OEICs (open-ended investment companies): valued at the bid price (the lower of the buying and selling price) on the date of death. If the bid/offer spread is unusual or unavailable (funds that price once daily), use the published mid-price or the actual price at which units were sold during the administration. Request a written date-of-death valuation from the fund manager or platform; (4) Investment trusts (quoted): investment trusts are listed companies — value using the quarter-up rule, not the bid price; (5) With-profits policies and endowments: the surrender value at the date of death, confirmed in writing by the insurance company. This is the sum assured plus accumulated bonuses, less any surrender penalties; (6) NS&I products (Premium Bonds, Government Bonds, Fixed-Rate Bonds): NS&I confirms values for all its products on written request. Premium bonds are eligible for prize draws for up to 12 months after the holder's death — any winnings are estate assets; (7) ETFs: use the quarter-up rule if listed on a stock exchange.

Some deceased individuals hold old-fashioned paper share certificates (certificated holdings) rather than electronic (CREST) holdings via a broker. The transfer process for paper certificates is more involved: (1) Identify all share certificates: search the deceased's papers for physical share certificates. Check dividend warrants, which show the company name and account number. Also check the Equiniti, Link Asset Services, Computershare, or Capita share registrars — these are the main share registrars for UK quoted companies. Contact each registrar with a death certificate to confirm the holding; (2) Stock Transfer Form (J30): to transfer certificated shares from the estate to a beneficiary (or to a selling broker), the executor completes a stock transfer form (J30 form) or a form of renunciation (for fixed-price issues or rights issues). The J30 is signed by the executor in their capacity as personal representative (not personally) and submitted to the company's share registrar with the original share certificate and a certified copy of the Grant of Probate; (3) Selling paper shares: to sell paper shares, instruct a stockbroker (most major platforms accept certificated holdings with a Grant of Probate). The broker will arrange the sale and return the proceeds to the estate. Note: some companies have minimum holding requirements or offer-price schedules; (4) Transferring paper shares to a beneficiary: to transfer the shares to a beneficiary without selling, the executor completes the J30 in favour of the beneficiary. The registrar cancels the old certificate and issues a new certificate in the beneficiary's name. The beneficiary then holds the shares as a registered holder; (5) SDLT: share transfers on inheritance are exempt from stamp duty (no SDLT, no stamp duty reserve tax on transfers for no consideration); (6) Dormant or unclaimed shares: if share certificates cannot be found, check the Unclaimed Assets Register (mylostaccount.org.uk) and contact the share registrar directly with the deceased's name and address. Shares may have been consolidated, split, or the company may have been taken over — all changes should be traceable through the registrar.

AIM (Alternative Investment Market) shares are shares listed on the AIM market of the London Stock Exchange — a growth market with less stringent listing requirements than the LSE Main Market. For probate and IHT purposes: (1) Valuation: AIM shares are quoted shares — they have a daily market price. Use the quarter-up rule in the same way as Main Market shares. Look up the AIM historic price on the LSE AIM website or FT/Bloomberg data services; (2) Business Property Relief: this is the key distinctive feature of AIM shares for IHT. Many AIM-listed companies qualify for 100% Business Property Relief (BPR) under IHTA 1984 s.105(1)(bb) — shares in qualifying unquoted companies. AIM companies are treated as 'unquoted' for BPR purposes (they are not listed on a 'recognised stock exchange' as defined for BPR). If the AIM company qualifies (predominantly a trading business, held for at least 2 years before death), the shares may be completely IHT-exempt, making AIM shares a popular IHT planning tool; (3) BPR qualification: not all AIM shares qualify for BPR. Companies with substantial investment/property holding activities may fail the 50% trading test. Companies in certain sectors (property investment, finance) generally do not qualify. HMRC Shares Valuation reviews BPR claims; (4) Valuing delisted AIM shares: if the company has been delisted from AIM by the date of death, it is no longer quoted — apply the unquoted share valuation methodology (professional valuation, HMRC Shares Valuation negotiation); (5) AIM shares in an ISA: AIM shares held in an ISA retain their ISA tax-free status in addition to any BPR relief. The ISA value is still declared for IHT on death, but if BPR applies, the IHT value after relief is nil (or close to it). Both APS and BPR can apply to the same holding.