Commentary

I8.311 Unquoted shares and securities

IHT, trusts and estates

I8.311 Unquoted shares and securities

Unquoted securities

I8.311 Unquoted shares and securities

Unquoted shares and securities are defined as shares and securities not listed on a recognised stock exchange and not dealt in on the USM1 or alternative market2. The same open market basis of valuation3 applies to these as to other forms of property, except that there is a specific provision concerning the amount of information available to the prospective purchasers4. The rule that the price is not to be reduced on the ground that the whole property is placed on the market at once5, applies to unquoted as well as to quoted shares6.

Information available to a prospective purchaser of unquoted shares

It has to be assumed that the open market purchaser has available to him all the information which a prudent prospective purchaser might reasonably require if he were proposing to purchase the shares or securities from a willing vendor by private treaty and at arm's length7. It is important to note that this paragraph is concerned only with the information available in the open market—it does not substitute a sale by private treaty for an open market sale. In Lynall v IRC8, the House of Lords considered whether the fact that accountants and a

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