HMRC internal manual

Capital Gains Manual

Valuation: post transaction valuation checks: introduction

HM Revenue & Customs provides a service to allow individuals, trustees and companies to have valuations for capital gains purposes checked after the transaction has taken place but before the relevant Return is submitted. The service is intended to help customers complete their Self Assessment Return and will help us by spreading workloads away from peak filing times.

All types of asset may be included in the service, for example land, quoted or unquoted shares or chattels. There is no charge to customers for the service.

The guidance below explains

  • what information customers must provide, see CG16603
  • what action to take on receipt of a request to check a valuation, see CG16606
  • what action to take when the Return is received, see CG16612.

The service

A request for a post transaction valuation check can be made at any time after the transaction has taken place but before the Return is filed for the period in which that valuation is to be used in the computation of a capital gains liability. Requests for pre-transaction valuation checks can not be accepted.

An application for a post transaction valuation check can also be made where there is a deemed disposal of an asset following a claim that an asset has become of negligible value, see CG13118 for general guidance on negligible value and specifically CG13130+ where the claim is that shares have become of negligible value.

We have undertaken to check valuations, either to agree the valuation put forward or to provide an alternative that we can accept. If necessary our valuers will enter into negotiations to reach agreement to a valuation. But customers must put forward a valuation to be checked, either a professional valuation or their own. The service is not to be used by customers to obtain valuations on request.

Joint owners of an asset, such as the members of a partnership, may make a collective approach to check a valuation. No objection should be made to such an approach if it is convenient.

Our valuers may not always be able to provide an alternative valuation before the filing date for the Return, see CG16611.

Apportionments

Requests for post transaction checks of simple apportionments that depend on valuations of assets should also be accepted. For example, requests to check apportionments where a number of assets have been disposed of in a single transaction should be accepted.

Requests to check more complex apportionments where there is an underlying technical issue to be resolved before the apportionment can be made should not be accepted. For example, requests to check an apportionment of consideration for the disposal of land between business and non-business elements, or an apportionment of the consideration for the disposal of an only or main residence that depends on a determination of the permitted area of garden or grounds.

Any apportionment that is suitable for this service should be dealt with in the same way as a request to check a valuation.