Finance Act 1973

51 Determination for estate duty and capital gains tax of open market price of unquoted shares and securities

(1) The provisions of subsection (3) below shall have effect in any case where, in relation to an asset to which this section applies, there falls to be determined—

(a) by virtue of section 7(5) of the [1894 c. 30.] Finance Act 1894 (principal value for purposes of estate duty) the price which, in the opinion of the Commissioners, property consisting of the asset would fetch if sold in the open market; or

(b) by virtue of section 44(1) of the [1965 c. 25.] Finance Act 1965 (market value for purposes of tax on chargeable gains) the price which the asset might reasonably be expected to fetch on a sale in the open market.

(2) The assets to which this section applies are shares and securities which are not quoted on a recognised stock exchange, within the meaning of the Corporation Tax Acts, at the time as at which their principal value for the purposes of estate duty or their market value for the purposes of tax on chargeable gains falls to be determined.

(3) For the purposes of a determination falling within subsection (1) above, it shall be assumed that, in the open market which is postulated for the purposes of that determination, there is available to any prospective purchaser of the asset in question all the information which a prudent prospective purchaser of the asset might reasonably require if he were proposing to purchase it from a willing vendor by private treaty and at arm's length.

(4) The provisions of Schedule 20 to this Act shall have effect with respect to the application of this section.

(5) This section and Schedule 20 to this Act.—

(a) so far as they relate to estate duty, shall be construed as one with the [1894 c. 30.] Finance Act 1894 ; and

(b) so far as they relate to capital gains tax, shall be construed as one with Part III of the Finance Act 1965.