References:  AC 26
Coram: Lord Russell of Killowen
For a valuation for estate taxes, the value is what a purchaser in the open market would have paid to enjoy whatever rights attached to the property at the relevant date.
Lord Russell of Killowen said that a share is the interest of a shareholder in the company measured by a sum of money for the purpose of liability in the first place and of interest in the second, but also consisting of a series of mutual covenants entered into by all the shareholders inter se in accordance with . . the Companies Act . . a share is an interest measured by a sum of money and made up of various rights contained in the contract, including the right to a sum of money of a more or less amount.
This case cites:
- Approved – Borland’s Trustee -v- Steel Brothers & Co Ltd ( 1 Ch 279)
Mr Borland was a shareholder. The company’s articles contained pre-emption rights, such that on a shareholder’s bankruptcy, he had, on receiving a transfer notice from the directors, to transfer his shares to a manager or assistant at a fair value . .
This case is cited by:
- Cited – Gray -v- Inland Revenue Commissioners CA (Times 24-Feb-94,  STC 360)
Partnership interests in a tenanted freehold estate can be valued together. The court considered the ‘statutory hypothetical sale’ when valuing property for Inheritance Tax purposes: ‘The property must be assumed to have been capable of sale in the . .
- Cited – Lonsdale (T/A Lonsdale Agencies) -v- Howard & Hallam Ltd HL (Bailii,  UKHL 32, Times 10-Jul-08)
The claimant sought compensation after his commercial agency was terminated. The court had found that the agency was declining in turnover, and reduced the compensation accordingly. There had been no written agreement for the agency, and six months’ . .
- Cited – Grays Timber Products Ltd -v- Revenue and Customs SC (Bailii,  UKSC 4, Times, SC Summ, SC, UKSC 2009/0044, WLRD,  WLR (D) 21, Bailii Summary,  STI 393,  2 All ER 1, 2010 GWD 8-145,  BTC 112,  STC 782)
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was . .