188体育

Section 1 of SP D12 explains that the market value of a partner鈥檚 fractional interest in a partnership asset will be a fraction of the value of the entirety of the partnership鈥檚 interest in the asset without any discount for the size of the partner鈥檚 interest.

A valuation of a partner鈥檚 fractional interest in an asset can be obtained from:

• the Valuation Office Agency 鈥� for land or buildings in the UK, or
• Shares and Assets Valuation 鈥� for unquoted shares or securities, partnership goodwill, see CG68300, or other intangible assets.

When obtaining a valuation of a partner鈥檚 fractional interest in an asset you must make it clear that the special partnership valuation basis is required and that the normal rules for discounting do not apply.

Example

A partnership between Y and Z owns 70% of the issued share capital of X Ltd.

The partners鈥� interests in partnership assets are:

• Y = 80%
• Z = 20%

The market value of the 70% shareholding as at 31 December accounting for the premium value attributable to the partnership鈥檚 controlling interest in X Ltd was 拢10,000.

The market values of the partners鈥� interests in the 70% shareholding in X Ltd as at 31 December were:

• Y - 拢10,000 x 80% = 拢8,000
• Z - 拢10,000 x 20% = 拢2,000

Note that the market value is apportioned by reference to the partners鈥� fractional interests. No premium value is attributed to Y鈥檚 larger partnership interest, nor is any reduction in value attributed to Z鈥檚 minority partnership interest.