Technical brief
Value rights as well as the company
Voting rights, dividend rights, transfer restrictions and family arrangements influence the interest being valued. A transfer of a controlling holding is not necessarily equivalent to a series of small minority holdings. The actual transaction and the relevant statutory assumptions must be clearly defined.
Separate value from affordability
The next generation’s ability to fund a purchase depends on cash flow, dividends, borrowing and the proposed payment structure. That is a separate analysis from market value. Owner dependence and the costs of a leadership transition can also affect sustainable performance.
Coordinate without assuming relief
CGT, inheritance tax and available reliefs depend on the facts and current rules. An independent valuation supplies an evidence base; it is not a tax planning recommendation. Solicitors and tax advisers should confirm the proposed transfer, relevant date and reporting obligations.
