Commentary

I8.319 Unquoted holdings of 25% or less

IHT, trusts and estates

I8.319 Unquoted holdings of 25% or less

I8.319 Unquoted holdings of 25% or less

For reasons given in I8.316, valuation of holdings of this type will in many cases be unnecessary because of the higher rate of business relief.

Holdings carrying 25% of the votes or less differ from larger minority holdings in that the holder cannot block a special resolution, his votes have less influence, and he stands less chance of acquiring control by purchasing more shares. He will be much more concerned with the dividend prospects, and less with earnings or assets. A higher yield (or lower price earnings ratio) will normally be required to discount these disadvantages, and in the case of very small holdings, a further reduction in value is reasonable on the grounds that a purchaser who will buy into such a weak position is difficult to find. This is because the purchaser would not pay so much for a share which he himself would have difficulty in selling should the

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