Lifetime gifts of unquoted shares - typically from founders to family members or trusts - are valued at open-market value at the date of the gift. Where the gift is a potentially exempt transfer (PET) and the donor survives seven years, no IHT is payable; otherwise the open-market value drives the IHT calculation.
When is it required?
- Family succession planning and lifetime gifts to the next generation.
- Settling shares into a family trust.
- Locking in value before expected growth, removing future appreciation from the donor's estate.
- Hold-over relief claims for CGT.
Our methodology
We apply the same open-market value test as probate (section 160 IHTA 1984), with related-property analysis under section 161 where applicable, and minority / marketability discounts calibrated to evidence.