Capital Gains and other taxes manual

Appendix 10: RBS defendable on appeal reports - guidance on completion

The Valuation Office Agency's (VOA) technical manual used to assess Capital Gains and other taxes.

1. Introduction

Before reporting a case Defendable on Appeal, and after considering all the evidence the RBS should be satisfied (where relevant) that:

a. The general opinion of the estimated replacement cost of the building(s) and/or machinery and plant is fair and reasonable and is supported by the best available evidence. In cases of doubt or difficulty advice should be sought from the DBS.

b. Any estimate as to the remaining useful life of a building(s) and/or machinery and plant is reasonable.

Immediately the RBS is satisfied that the costings are DOA, a report should be sent to the DBS, in accordance with Appendices 11 and 12.

Following verification by the DBS, that the case is DOA, the RBS will be authorised to forward a brief report on form VO 1009 (RBS) to the DV setting out any assumptions that have been made in arriving at the estimates and any known evidence which may influence the RBS’s opinion. In addition the RBS will advise the DV of the latest estimate of the replacement cost of the building(s) and/or machinery and plant put forward by the taxpayer (or agent) or any interested party and details of points of difficulty.

2. Completion of VO 1009 - ‘case summary’ (Appendix 11)

The ‘Case Summary’ is intended to contain all salient information.

All relevant boxes should be completed and deletions made as appropriate.

All submissions to DBS must be in duplicate. RBS’s should complete the boxes as follows, singular items being taken as plural as required.

Box 1 DV’s office title, location number and case reference.

Box 2 HMIT, district and reference.

Box 3 RBS Region, location number and case reference.

Box 4 The full address of the property concerned. In multi-property cases the property entered on the case file cover should be entered together with an indication of the number of other properties involved.

Box 5 The name of the Taxpayer.

Box 6 The tax applicable eg Capital Allowances (abbreviated CA) and whether relating to an existing or new structure, alteration, refurbishment or extension.

Box 7 Relevant costing date applicable.

Box 8 Insert particulars of costing requested by DV.

Box 9 Insert whether Bills of Quantities/Final of Variation Account, Approximate Schedule of Quantities etc based on “Spons” etc.

Box 10 Briefly describe exterior walls, fenestration, roof, doors, the floor, wall and ceiling finishes, general quality and number of storeys. Briefly describe nature and type of machinery and plant, eg air conditioning, central heating, lifts etc as appropriate.

Box 11 Insert approximate age of property and the major items of machinery and plant.

Box 12 Insert total building/structure and machinery and plant costings. (separately where applicable).

Box 13 Insert total building/structure and machinery and plant costings. (separately where applicable).

Box 14 List any further information required which may influence RBS costing.

Box 15 A brief summary of items in dispute and the state of negotiations, including the name of any agents involved.

Box 16 Assumptions should be both reasonable and realistic even though they may be Revenue favourable. List the assumptions made which may materially affect RBS costing if proved incorrect. Delete the “starred” rider if no assumptions have been made.

Box 17 The RBS should make this affirmation only after careful review of all the information.

Box 18 The DBS should make such comments as he feels are proper in the circumstances to ensure that RD/CV(S)/CEO and Inspector are fully advised.

3. completion of “appeal report” (Appendix 12)

An “Appeal Report” will be appropriate in addition to a Case Summary in the following cases:-

  1. In all CGT cases reported DOA under the procedures in Section 6, Part 5.

  2. In any case that has been referred to the IR Solicitor to be appraised prior to litigation.

  3. In any case that has been set down for hearing before the Land Tribunal, Special or General Commissioners.

  4. If the Instructing body, CEO or the RD/CV(S) believes that an Appeal Report is required in a specific instance then the request will be made via the DV.

The “RBS Appeal Report Guidance Notes” Appendix 12, are self-explanatory and list the relevant headings. However this may be amended or additional items added after careful consideration of the case circumstances.