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When someone dies holding shares or an investment portfolio, the executor must notify the broker or share registrar, obtain a probate valuation, and then either sell the investments or transfer them to beneficiaries. Listed shares are valued using HMRC's "quarter-up" method. There is no Capital Gains Tax on gains made during the deceased's lifetime — the beneficiaries inherit at the date-of-death value. In Scotland the executor acts under confirmation rather than a grant of probate; the valuation method is the same.
Shares and investment portfolios are among the more complex assets to administer after a death, requiring specific valuation methods, notifications to multiple organisations, and careful decisions about whether to sell or transfer. The good news is that the Capital Gains Tax uplift at death removes the CGT liability on all gains made during the deceased's lifetime — potentially saving significant tax compared with selling the same investments during their lifetime.
For listed shares, HMRC uses a valuation method known as the "quarter-up" rule. It applies to the Inheritance Tax return — the IHT400, or the figures reported for an excepted estate — to value the shares at the date of death.
HMRC's published method has three steps and no alternative calculation to compare it against:
Multiply the quarter-up price by the number of shares held. HMRC does not publish a mid-price alternative to compare it with, so ignore any guidance that tells you to work out two figures and use the lower one.
Historical share prices for listed UK companies can be obtained through a stockbroker, and many investment platforms provide a probate valuation service. Fees vary and no official source publishes a range, so ask the platform what it charges before instructing one.
Example of the quarter-up calculation:
Suppose Company XYZ shares were quoted on the date of death at a lower closing price of 350p and a higher closing price of 354p.
If the deceased held 1,000 shares, the probate value would be £3,510.
Most modern share holdings are held electronically through a stockbroker or investment platform, in what is called a "nominee" account. In this arrangement, the broker holds the shares on behalf of the investor — the investor's name does not appear on the company's share register; instead the broker's nominee company appears. This makes the administration process relatively straightforward:
Paper share certificates present a more complex picture. If the deceased held shares in old, paper certificate form, they are registered directly with the company's share registrar. You need to identify each company, locate its share registrar, and notify them of the death. Major UK share registrars include:
Which registrar holds a given company changes over time, so check the company's own investor relations page or the most recent shareholder correspondence rather than assuming.
Send each registrar a certified copy of the death certificate and notify them that the registered holder has died. They will advise you on the transfer or sale process and the documents required. You do not typically need to surrender paper certificates immediately — the registrar will advise when and how these should be returned.
Once probate has been granted, shares can be transferred directly to a beneficiary rather than being sold first. This is called a transfer in-specie (or re-registration). The process varies by broker and registrar but generally involves:
The beneficiary inherits the shares at their date-of-death value as their base cost for future CGT purposes. They should retain documentation showing this value.
The Capital Gains Tax treatment of shares on death is one of the most generous provisions in UK tax law. On death, all of the deceased's chargeable assets — including shares — are treated as if they were sold and immediately reacquired at their market value. This "deemed disposal" does not trigger a CGT charge: instead, it "wipes the slate clean" on any gains accumulated during the deceased's lifetime.
This means:
Executors who sell investments before distributing cash to beneficiaries should be aware that CGT may apply to gains made between the date of death and the date of sale. Personal representatives have an annual exempt amount of £3,000, available for the tax year of death and the following two tax years. Above that, GOV.UK states that “trustees or personal representatives of someone who's died pay tax at 24% from 6 April 2026”. The old 10% and 20% rates for assets other than residential property no longer apply.
For paper share certificates, the full process with the share registrar typically works as follows:
If the deceased held shares in many different companies (perhaps through a share save scheme or as a long-term private investor), you may need to deal with several registrars simultaneously. Keep a log of each company, its registrar, and the status of each claim.
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