Inheritance Tax Manual

Appendix 18: appeal reports - guidance notes on completion

The Valuation Office Agency's (VOA) technical manual relating to Inheritance Tax.

All text amended

1. Introduction

Appeal Reports should only be completed in those cases where negotiations have become dead-locked and CTO has indicated that a determination is warranted (see Section 27 Part 4).

It must be borne in mind that, on receipt of an Appeal report from the DV, CTO will in all probability serve a Notice of Determination on the parties and, provided that an appeal is received against it, the papers will then be passed to the Inland Revenue Solicitor in order to make a reference to either the Lands Tribunal or the Special Commissioners, as appropriate. DVs must, therefore, ensure that any valuation reported to the CTO at this stage is genuinely defendable and must also, as far as possible, satisfy themselves as to the accuracy of any information which is to be cited in support of this valuation.

2. Completion of appeal report

Listed below are side headings which will normally be included in an Appeal Report where Agricultural Relief under Section 115(3) IHTA is not in issue (see Appendix 19 for cases where Section 115(3) is in issue).

It is impossible to cover all circumstances in a list of this sort and DV’s must feel free to add additional relevant matter as appropriate.

All submissions must be in duplicate:

Suggested Headings

  1. DV’s reference

This should include the Group Office name, the location where the case is being dealt with and the case reference number.

  1. CTO’s reference
  2. Deceased/transferor/settlement
  3. Taxable occasion and date(s) of valuation

These should be the same as on the original instructing Form VOA 1/VOA 2 or equivalent.

  1. Address

The full address of the property concerned. In multi-property cases, only the addresses of those properties where the values are at issue should be provided.

  1. Interests to be valued

Details of all the properties concerned should be provided here. Where any details are in dispute (e.g. whether a tenancy was protected by Rent Act 1977) these should be stated. Details of any known restrictive covenants, easements etc. which affect value should be provided here. If none are known to exist, this should be stated.

  1. Inspection

A statement regarding inspections with dates and, if the inspection was external only, an explanation as to why no internal inspection was made.

  1. Description

Full details of the situation, description, construction, accommodation, condition and area of the property, together with details of access and public services should be provided. Plans clearly identifying the property and, wherever possible, photographs should be attached as separate exhibits and should be referred to at Paragraph 15.

  1. Planning

Details of any planning provisions affecting the property should be provided including copies of any relevant documents. If planning matters are in dispute, the respective assumptions and conclusions drawn by both sides should be outlined.

  1. Comparables

Details of the DV’s comparables and their analysis should be included here. An explanation of the conclusions drawn should be provided. It should also be stated whether the comparables have been inspected (usually externally) and, if not, why not.

  1. DV’s valuation

A full explanation of the valuation should be provided, including reasons for particular values per square metre or yield adopted etc.

  1. Parties’ valuation

Detailed comments and criticisms of the parties’ valuation should be provided here, including the relevance or otherwise of any comparables they have cited.

  1. Items in dispute

All aspects which have not been agreed should be listed here, e.g. valuation of entirety, appropriate discount for undivided share and an outline of the respective arguments should be given including reference to any case law quoted.

  1. DV’s Observations

This should include an objective summary of the merits of the respective cases and should highlight any strengths and weaknesses in both the DV’s and the parties’ cases.

  1. Plans and Photographs etc

All enclosures with the report should be listed here.

  1. DV’s affirmation

The affirmation by the DV is confirmation that the procedure contained in Section 27 has been followed in each case where an Appeal Report is required. In all disputed cases the DV (or report signatory) should personally review the matter In accordance with Section 27 para 27.51. If the DV concludes that the report does satisfy para 27.51, the following endorsement should be inserted:

“I have reviewed this case and am satisfied that the approach to the valuation is correct in principle and in law.

I am also satisfied that there is sufficient evidence available to adequately support this opinion of value (subject to any necessary consents being forthcoming.”

The report should then be signed and dated. 1. CEO endorsement

Here, the appropriate CEO Technical Adviser will insert their conclusions as to the merits of the case in accordance with Section 27 para. 27.52.