Valuating shares in Bradford & Bingley

Guidance has been published reflecting HMRC’s understanding relating to the valuation for inheritance tax purposes of shares in Bradford & Bingley.

The Revenue understands that the Independent Valuer is unable to say at present whether the right to receive compensation has any current value and that nearly all B&B shareholders had holdings of less than 1 000 shares.

For the purposes of completing inheritance tax accounts on a without prejudice basis HMRC are now prepared to accept that the right to receive compensation in respect of B&B shares may be included at a nil value where the holding is of 1 000 shares or less.

This acceptance remains in place until the Independent Valuer is in a position to provide any further information about the amount of likely compensation or of the likely timescale for payment. At that point HMRC will consider whether any further or amended...