CG27250 - Partnerships: Valuation of a partner's fractional interest in a partnership asset: SP D12:
Section 1 of SP D12 explains that the market value of a partner바카라 사이트™s fractional interest in a partnership asset will be a fraction of the value of the entirety of the partnership바카라 사이트™s interest in the asset without any discount for the size of the partner바카라 사이트™s interest.
A valuation of a partner바카라 사이트™s fractional interest in an asset can be obtained from:
- the Valuation Office Agency 바카라 사이트“ for land or buildings in the UK, or
- Shares and Assets Valuation 바카라 사이트“ for unquoted shares or securities, partnership goodwill, see CG68300, or other intangible assets.
When obtaining a valuation of a partner바카라 사이트™s 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 partners바카라 사이트™ 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 partnership바카라 사이트™s controlling interest in X Ltd was £10,000.
The market values of the partners바카라 사이트™ interests in the 70% shareholding in X Ltd as at 31 December were:
- Y - £10,000 x 80% = £8,000
- Z - £10,000 x 20% = £2,000
Note that the market value is apportioned by reference to the partners바카라 사이트™ fractional interests. No premium value is attributed to Y바카라 사이트™s larger partnership interest, nor is any reduction in value attributed to Z바카라 사이트™s minority partnership interest.