SSAS Asset Valuation - Accountant Question

GA2Hela

Good morning,

I have a client with a SSAS that holds some private company shares. We are in the process of deconstructing the SSAS and need a valuation of the shares for TPR and HMRC. The client is insisting on using someone that they know, who is a RICS surveyor not an accountant, but has agreed to do a red book valuation.

Would this be allowed for valuation purposes or will a qualified accountant be required to provide the valuation?

Many thanks in advance
Angela

benjaminfabi

You'd need to ask the scheme administrator. Them knowing the person isn't relevant if the scheme is paying an 'arm's length' commercial rate to a professional for the work being done. But a RICS Red Book valuation is related to property, not private company shares.

The valuation of a property company shareholding is not automatically the same as it's underlying property valuation. For example, if you are selling/transferring a small shareholding to another shareholder, where that receiving shareholder than gains an overall majority in the company, the monetary value of that shareholding can be higher than if you were selling/transferring to a person with a minority stake.

This is an accountant question, probably not covered within RICS guidelines on valuations of the property itself.