Capital Gains and other taxes manual

Appendix 15: letter accompanying application form for post-transaction valuation checks (PTVC) for Capital Gains

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

Introduction

When working out your Capital Gains Tax liability, or in the case of companies, your Corporation Tax liability on chargeable gains, you sometimes have to value assets. If you use such valuations, we offer a free service to help you complete your Tax Return. You can ask your Inland Revenue office to check valuations after you have made the disposal but before you make your Return. Our service is available to all taxpayers, individuals, trustees and companies.

If we agree your valuations we will not challenge your use of those valuations in your Return unless there are any important facts affecting the valuations that you have not told us about. Agreement to your valuations does not necessarily mean that we agree the gain or loss. We will not consider the other figures you have used until you make your Return.

If we cannot agree your valuations we will suggest alternatives. We use specialist valuers to value some assets, mainly shares, land, goodwill and works of art. You will also be able to discuss your valuations with our valuers. You must file your Return by the filing date printed on it even if we have not been able to agree your valuations or suggest alternatives. Your Return must also tell us about any valuations that we have checked but been unable to agree.

If, after discussion, we cannot reach agreement on any valuations you use in your Return, you will be able to appeal to an independent tribunal.

How to get your valuations checked

If you want us to check your valuations, ask your Inland Revenue office or any Inland Revenue Enquiry Centre for one copy of form CG34 for each valuation you want us to check. Return the completed form(s) to us together with the information and documents requested on the form. You can also attach any other information that will help us understand your valuations.

If you do not provide all the information requested on the form, we may be unable to check your valuations. If you have difficulty getting all of this information, or you are not sure how to prepare a Capital Gains computation, ask us for help.

How long it will take

Your Inland Revenue office, or our specialist valuers, will contact you as soon as possible after you make your application. Valuation is an exercise of judgement that can sometimes be a difficult and lengthy process, particularly if discussion is necessary.

The sooner you contact us after you have made a disposal, the more likely we will be able to reach agreement with you before you make your Return.

We expect that it will take a minimum of 56 days to agree your valuations or to provide you with an alternative. In more complex cases it may take longer. In a few very complex cases we may not be able to provide you with any alternative valuation before the filing date for your Return. If you want to use our service please send any forms CG34 to your Inland Revenue office at least two months before you need to make your Return.

Further information

We can give you further information about this scheme at your Inland Revenue office or from your nearest Inland Revenue Enquiry Centre.