Share Valuations

Valuation of shares in private companies is a particularly difficult exercise as so many of the issues are subjective.

HMRC frequently challenge such valuations, and this may leave the professional advisor exposed if the original valuation does not stand up.

We can help you with the initial valuation, a second opinion on an initial valuation, or assisting the defence of a valuation when challenged by HMRC.

An example

We were recently instructed by Fee Protection Insurance company  to defend an accountant’s valuation of the majority and minority shareholdings of husband and wife following a disposal on the restructuring of their group. HMRC had rejected the accountant’s valuation and were proposing alternative figures that would have resulted in extra tax of around £400k.

We visited the accountant, reviewed the company’s accounts, identified additional factors which had not been spotted by either side, which resulted in HMRC accepting the original calculations.  All parties (except HMRC) were delighted with the outcome.  The client didn’t even have to pay a penny in professional fees as it was covered by insurance – and even the cover came free with the company’s fee protection policy!

If you have a share valuation problem call us on 0845 643 5450 to discuss how we can help.