CAT - Section 26 & 27

Question 1

What is the general rule for valuation of shares under S.27?

Answer 1

Section 27 is concerned with the valuation of shares in a private company and applies where, on the date of the gift or on the date of the inheritance, the company is controlled by the donee or successor.

In cases within S.27 the market value of each share is taken as its proportionate part of the total value of the company i.e. the value of a 75% holding is equivalent to 75% of the total market value of all shares in the company.

Question 2

What is the general rule for valuation of property under S.26?

Answer 2

s.26 states that property is to be valued at the price which it would fetch if sold on the open market in such manner, and subject to such conditions, as might reasonably be calculated to obtain for the vendor the best price for the property.