Readers’ forum: Discount on minority holding in family property company

An accountant in another practice with whom I used to work has advised me that when valuing a minority holding in a family property company the usual discount on minority holdings is not available so that a holding of one third of the shares is worth a full one third of the value of the company.

I see no reason behind this nor can I find any reference or support anywhere to this being the case. As my adviser is usually well informed could readers just set my mind at rest that I can set aside the advice given?

Query 19 921 – Toast.

Discount in family property companies is generally accepted by HMRC.

The minority holding discount in family property companies is widely known and generally accepted by HMRC. Valuers normally put forward a discount of up to 60% or 70% on full asset...