To value shares for probate, take the closing price of each holding on the date of death and multiply it by the number of shares held. You value the whole estate as at the date the person died, not the date you apply for probate or the date the shares are eventually sold.
That is the headline answer. In practice a share portfolio can hold listed shares, unit trusts, government stock, ISAs and sometimes private company shares, and each is valued in a slightly different way. This guide walks through the method HMRC sets out, the forms involved, and the points where people most often go wrong. Figures are current as at August 2026 and are subject to change.
The short answer, in three steps
For a portfolio of shares quoted on the London Stock Exchange, the process is:
- Find the closing price of each holding on the date of death (gov.uk, valuing stocks and shares, as at August 2026, subject to change).
- Multiply the closing price by the number of shares held to get the value of that holding.
- Add any dividend that had been declared but not yet paid at the date of death.
Repeat for every holding and add them together. If the person died on a day the markets were closed, such as a weekend, you can use the closing price from either the last trading day before death or the first trading day after (gov.uk, as at August 2026, subject to change).
Which shares, and which form
The type of holding decides both how you value it and where you report it. The value goes onto the inheritance tax account (form IHT400) and its share schedules, and the totals also support the probate application.
| Type of holding | How it is valued | Schedule |
|---|---|---|
| Listed shares and securities | Closing price on the date of death, per share, times the number held | IHT411 |
| Unit trusts and OEICs | Manager's bid or published price on the date of death | IHT411 |
| UK government stock (gilts) | Closing price on the date of death | IHT411 |
| Unlisted or private company shares | Open-market valuation, often needing a professional valuer | IHT412 |
Source: IHT411 and IHT412, gov.uk, as at August 2026, subject to change.
If the estate is not liable to inheritance tax, you may not need to submit the full IHT400 and its schedules, but you still need accurate date-of-death share values for the probate application itself. Reporting rules for lower-value and exempt estates are set out on gov.uk (as at August 2026, subject to change). Our overview of what probate involves puts this in the wider context of administering an estate.
Valuing listed shares: the closing price and the quarter-up rule
HMRC accepts the closing price of a listed share on the date of death as the value for inheritance tax and probate. If you instead work from the Stock Exchange Daily Official List, which quotes a range of prices, you can use the "quarter-up" figure.
The quarter-up price is the lower of the day's two quoted prices plus one quarter of the difference between them (gov.uk, HMRC IHT Manual IHTM18091, as at August 2026, subject to change). For example, if the range is 1,091p to 1,101p, the difference is 10p, a quarter of which is 2.5p, so the quarter-up price is 1,093.5p. Either the closing price or the quarter-up price is acceptable, so long as you apply the method consistently across the portfolio.
Dividends and the "XD" marker
A dividend that had been declared but not yet paid at the date of death belongs to the estate and is added to the value of the holding. Where a share is quoted "ex-dividend", shown as "xd" next to the price, the price no longer includes the coming dividend, so you add the dividend separately. For UK company shares you use the net dividend after tax, and for overseas companies you use the gross dividend, per HMRC guidance (gov.uk, valuing stocks and shares, as at August 2026, subject to change).
Unit trusts, gilts and ISAs
For unit trusts and open-ended investment companies, the value comes from the fund manager's price on the date of death. For UK government and municipal stock, use the closing price on that date. Shares and funds held inside an Individual Savings Account are still part of the estate for inheritance tax, even though they were free of income tax and capital gains tax during the person's lifetime (gov.uk, HMRC IHT Manual IHTM18097, as at August 2026, subject to change). A surviving spouse or civil partner may be able to inherit an extra one-off ISA allowance, but the value of the holding still counts when the estate is assessed.
Where shares were held in joint names, only the deceased's share is counted. Between spouses or civil partners this is usually treated as half, unless there is evidence of a different split. Because share values feed directly into any tax due, they sit alongside the property and cash figures in the wider inheritance tax calculation.
Unlisted and private company shares
Shares in a private or unlisted company have no daily market price, so they are valued at what they would fetch on the open market between a willing buyer and a willing seller. This usually calls for a professional valuation that looks at the company's accounts, assets, profits and the size of the holding, and the figure is reported on form IHT412 (gov.uk, IHT412, as at August 2026, subject to change). Some trading businesses may qualify for business property relief, and the rules for that relief change from 6 April 2026, so a valuation of business shares is an area where taking advice is common.
If shares fall in value after death
If the personal representatives sell qualifying investments within 12 months of the death for less, in total, than their date-of-death value, they may be able to claim relief so that the lower sale price is used for inheritance tax instead. The claim is made on form IHT35 and looks at the overall gain or loss across all qualifying investments sold in that period, not just the ones sold at a loss (gov.uk, IHT35, as at August 2026, subject to change). This relief only helps where inheritance tax was actually paid, and the deadline is strict, so it is worth checking the position before selling.
- Valuation date: the date of death, using the closing price (gov.uk, as at August 2026, subject to change).
- Nil-rate band: £325,000, frozen until 5 April 2031 (gov.uk, as at August 2026, subject to change).
- Standard IHT rate: 40%, or 36% where at least 10% of the net estate passes to charity (gov.uk, as at August 2026, subject to change).
- Probate application fee: £526 for estates over £5,000, with no fee at or below £5,000 (gov.uk, as at August 2026, subject to change).
- Extra copies of the grant: £2 each when ordered with the application (gov.uk, as at August 2026, subject to change).
Scotland and Northern Ireland
This guide describes the law and forms of England and Wales. Share values are calculated in much the same way across the UK, but the process differs. Scotland uses confirmation rather than a grant of probate, and applies its own succession rules. Northern Ireland has a separate but broadly similar system to England and Wales. If an estate holds assets across more than one jurisdiction, it can be worth taking advice in each.
Frequently asked questions
How do you value shares for probate?
You value shares at the closing price on the date of death, multiplied by the number of shares held, and add any dividend declared but not yet paid. Listed shares, unit trusts and gilts use published date-of-death prices, while unlisted shares need an open-market valuation. Figures are reported on the inheritance tax schedules IHT411 or IHT412 (gov.uk, as at August 2026, subject to change).
What is the quarter-up rule?
The quarter-up rule is one accepted way to value listed shares. You take the lower of the day's two quoted prices and add one quarter of the difference between them. For example, a range of 1,091p to 1,101p gives a quarter-up price of 1,093.5p. HMRC also accepts the closing price, so either method can be used consistently (gov.uk, IHTM18091, as at August 2026, subject to change).
Do I use the share price on the date of death or the date of probate?
You use the price on the date of death. The estate is valued as at the day the person died, so later movements in the market do not change the probate value. If qualifying investments are then sold within 12 months for less overall than their date-of-death value, relief may allow the lower figure to be used for inheritance tax (gov.uk, IHT35, as at August 2026, subject to change).
Which form do I use to report shares for inheritance tax?
Listed shares, unit trusts and government stock are reported on schedule IHT411, and unlisted or private company shares on schedule IHT412. Both are submitted with the main inheritance tax account, form IHT400, where one is required (gov.uk, IHT411 and IHT412, as at August 2026, subject to change).
Do shares held in an ISA count for probate?
Yes. Shares and funds held in an ISA form part of the estate for inheritance tax and probate, even though they were free of income tax and capital gains tax while the person was alive. A surviving spouse or civil partner may inherit an extra ISA allowance, but the value of the holding is still counted (gov.uk, IHTM18097, as at August 2026, subject to change).
What if the shares fall in value before they are sold?
If the personal representatives sell qualifying investments within 12 months of the death for less, in total, than their date-of-death value, they may claim relief so the lower sale price is used for inheritance tax. The claim covers all qualifying investments sold in the period, not only those sold at a loss, and is made on form IHT35. It only assists where inheritance tax was paid (gov.uk, IHT35, as at August 2026, subject to change).