By Bill Anderson, Senior Valuation Advisor & RICS Associate, Assetica — 2026-05-04
How private company shares are valued for probate and inheritance tax, why HMRC scrutinises these valuations, and how an independent report protects the estate and its executors.
For inheritance tax, shares are valued at the price they would fetch on the open market on the date of death, assuming a hypothetical willing buyer and seller. This requires a full valuation of the company and the specific shareholding, not a simple book value.
Most estates hold minority stakes. Discounts for lack of control and marketability apply and can be substantial. Applying these correctly, with evidence, is what makes the valuation defensible if HMRC questions it.
An independent valuation gives executors a defensible basis for the inheritance tax return and protects them from personal exposure. It also ensures beneficiaries are treated fairly and the estate is not over-taxed.
How are private company shares valued for probate?
At open market value on the date of death, based on a full valuation of the company and the specific shareholding, with appropriate discounts for minority holdings. Book value is not sufficient.
Why does HMRC scrutinise probate share valuations?
Because the figure directly affects the inheritance tax due. Undervaluation invites challenge, additional tax and penalties, so a defensible independent valuation is essential.
Can you value shares in an overseas company for a UK estate?
Yes. Assetica values UK and overseas private company shares for probate and inheritance tax, applying the standards and discounts HMRC expects.