For the purposes of completing Inheritance Tax accounts, on a without prejudice basis, HMRC is now prepared to accept that the right to receive compensation in respect of Bradford & Bingley (B&B) shares may be included at a nil value where the holding is of 1,000 shares or less.
This acceptance arises out of the fact that the Independent Valuer is unable to say at present whether the right to receive compensation has any current value and that nearly all B&B shareholders had holdings of less than 1,000 shares.
HMRC's current guidance remains in place until the Independent Valuer is in a position to provide any further information about the amount of likely compensation or of the likely timescale for payment. At that point, HMRC will consider whether any further or amended guidance is necessary.
For holdings of more than 1,000 shares, executors or others liable for Inheritance Tax should contact the Shares and Assets Valuation Helpline on 0115 9742222 for advice on the appropriate value to be included for Inheritance Tax purposes.
Full details are available here