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HMRC internal manual

Business Income Manual

Builders, property dealers & developers: valuation: not negotiated valuation: not accepted

Where the District Valuer does not agree the valuation ‘as returned’ but reports a ‘not negotiated’ valuation, it may become necessary to ask for a negotiated valuation (see BIM51600).

These cases can throw up difficult taxation, accountancy and practical problems which may lead to a contentious appeal hearing before the Tribunal at which the District Valuer’s presence as an expert witness would be required. The accounts valuation should normally, therefore, be accepted in the following circumstances:

  • Where there is only a small difference in percentage terms between the District Valuer’s not negotiated figure and the accounts figure (if the taxpayer is aware that you have asked the District Valuer for an opinion, you should explain that you will accept the returned profit or loss without prejudice to the valuation put forward by the District Valuer). Each case will need to be reviewed on its own merits but normally, a difference not exceeding 10% may be accepted.
  • Where there is no current tax effect (see BIM51590).