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HMRC internal manual

Capital Gains Manual

Assets: principles of valuation: information available at valuation date

To make a valuation at a particular date you must not apply hindsight. You should make a valuation on the basis of the information which

  • was available, or
  • could have been made available at that date.

This does not mean that you cannot consider, in the light of subsequent events, a valuation which is put forward.

For example, an asset which is valued at £15,000 at 31 March 1982 is sold for £10,000 in October 1990. There may be a good reason why the value of the asset has declined between 1982 and 1990, but, with the effect of inflation, you would expect it to have risen. It is reasonable to ask why the asset declined in value but it would be wrong to assume that the value at 31 March 1982 must be too high simply because of the low sale price.