Practical Share Valuation

Provides a reference point for practitioners, who may need to prepare or review a valuation of shares or intangible assets, and acts as a practical guide to the more straightforward valuations which are required for tax purposes. Practical Share Valuation combines decades of the authors' practical experience in order to provide a reference guide to the valuation of unquoted shares and intangible assets as well as a practical handbook for practitioners preparing more routine valuations for tax purposes. The book highlights the relevant case law relating to valuations and also provides a handy list of additional data sources to aid the valuer in gaining access to the comparator data and latest valuation standards available. Whether you need to prepare a valuation or review work prepared by another practitioner, this book provides a wealth of easily accessible information, hints and tips to help you navigate through the potential minefield of share valuations. The seventh edition includes the following updates: - Full analysis of new legislation proposed on bringing non-resident companies with UK taxable income and gains from the disposal of UK residential property interests within the scope of corporation tax; - Guidance on new penalties in connection with offshore matters and offshore transfers (FA 2016), for inheritance tax for transfers of value on or after 1 April 2017 and for income and CGT from April 2016, in particular a new asset-based penalty for certain offshore disclosure inaccuracies and failures; - Commentary on several well-publicised litigation battles regarding failed tax avoidance schemes, such as HMRC vs Ingenious Media and HMRC vs Rangers Football Club; - Changes to the Companies Act 2006 and new reporting requirements as a result of the transition to FRS 102 and FRS 105 (effective for accounting periods on or after 1 January 2016); - Updated guidance from HMRC Shares and Assets Valuations and International Valuation Standards 2017.

Table of Contents:
DIVISION A MAIN NARRATIVE Chapter 1 Introduction PART 1 CASE LAW Chapter 2 General principles Chapter 3 Open market value Chapter 4 Fair value Chapter 5 Relevant factors Chapter 6 The required yield Chapter 7 Asset-related valuations Chapter 8 The foreign influence PART 2 STATUTE LAW Chapter 9 Capital gains tax and corporation tax on chargeable gains, stamp duty and income tax Chapter 10 Inheritance tax PART 3 VALUATION IN PRACTICE Chapter 11 Valuation approaches Chapter 12 Other methods of valuation Chapter 13 The influence of the London Stock Exchange Chapter 14 The real market for shares and valuation for specific purposes Chapter 15 Published data Chapter 16 Unpublished information and company records Chapter 17 Valuation of intellectual property and other intangibles Chapter 18 HMRC Shares and Assets Valuation Chapter 19 Valuation reports Chapter 20 Fair value for financial reporting purposes Chapter 21 Accounting for goodwill and intangible assets arising on an acquisition Chapter 22 Accounting for equity awards to employees Chapter 23 Valuation in matrimonial proceedings DIVISION B VALUATION EXAMPLES Example 1 Mock valuation report in Re Lynall, Lynall v IRC Example 2 Mock valuation report in Re Holt Example 3 Sparkco Ltd – fair value Example 4 Diplodocus Ltd – valuation of deferred shares at 13 April 2014 Example 5 Salamander Marketing Consultants Ltd – valuation of shares for tax purposes Example 6 Motorco – valuation of goodwill on incorporation Example 7 Logo Properties Limited – valuation of shares in a property company for IHT purposes Example 8 Lavender Systems Limited – EMI valuation DIVISION C APPENDICES Appendix A Financial Times/Stock Exchange Actuaries Share Indices Appendix B Financial Times Actuaries Equity Indices (at 31 March 1982) Appendix C Financial Times Actuaries Share Indices and their constituents (for 31 March 1982 valuations) Appendix D Relevant estate duty and other obsolete legislation Appendix E RICS Valuation – Global Standards: VPGA 3, VPGA 4, VPGA 6, VPGA 7 and VPGA 10 (1 July 2017) Appendix F International Valuation Standards 2017, IPEV Guidelines (Appendix 1) and IVS 105 Appendix G Practice Note: Apportioning the Price Paid for a Business Transferred as a Going Concern Appendix H Civil Procedure Rules, Part 35 (Experts and Assessors), Practice Direction 35 and Factsheet 53 Appendix I Parry's Valuation Tables – Present value of one pound Appendix J Parry's Valuation Tables – Years' purchase or present value of one pound Appendix K Summary of main relevant taxation Acts since 2014 that might affect a valuation Appendix L Useful websites

About the Author :
Nigel Eastaway OBE, is a Tax Partner at MHA MacIntyre Hudson. Diane Elliott is a director in the share and business valuations team at BDO LLP. Chris Blundell is a tax partner at MHA MacIntyre Hudson with expertise in share schemes. Cameron Cook is a corporate finance partner at MHA MacIntyre Hudson.