Inheritance Tax Act 1984 section 168

Unquoted shares and securities

Section 168 sets out the assumptions to be made when valuing unquoted shares and securities for inheritance tax purposes.

• Unquoted shares and securities must be valued at the price they might reasonably fetch on the open market.
• It is assumed that any prospective purchaser has access to all the information a prudent buyer would reasonably require.
• The hypothetical transaction is treated as a purchase from a willing vendor by private treaty and at arm's length.
• This section works alongside the general market value rule in section 160 to establish how unlisted holdings are valued for inheritance tax.