HMRC have published guidance on their understanding relating to the valuation of Bradford and Bingley shares for inheritance tax purposes.

For the purposes of completing inheritance tax accounts, on a Without Prejudice basis, HMRC will accept that the right to receive compensation may be included at a nil value where the holding is of 1,000 shares or less.

This acceptance will remain in place until the Independent Valuer can provide further information about the amount of likely compensation or of the likely timescale for payment.  HMRC will then reconsider whether further guidance is necessary.

For holdings of more than 1,000 shares, Executors or others liable for inheritance tax should contact the shares and assets valuation helpline on 0115 974 2222 for advice on the appropriate value. 

Posted on 07 Oct 2009