CG16607 - Valuation: post transaction valuation checks: review of computations and timings

The service we are providing to customers is to check the accuracy of the valuations they intend to use in their Returns. Agreeing the valuation, or referring the valuation to specialist valuers for agreement, does not imply that we agree the computation in which the valuation is used. Before the Return is filed there may not be time to review the form of the computation, nor is there the machinery to litigate any disagreement. So the computation submitted may not be reviewed in detail at this stage, but this does not prevent interventions during the enquiry period should the review warrant such action.

If time permits, there is no harm in pointing out any obvious errors in the computation that affect the valuation. The aim should be to avoid wasting the valuer’s time in dealing with any obviously unnecessary valuations.

The intention is to deliver agreement to as many valuations as possible before the deadline for filing Returns. This means that we must try to avoid any unnecessary delay. Requests for a valuation check should be dealt with as quickly as possible.

If the valuer can agree the valuation without contacting the customer they will notify you of that agreement and you should inform the customer without delay. If the valuer has entered into negotiations and reached agreement to a valuation they will inform the customer of that agreement and notify you at the same time.

We cannot guarantee that all post transaction valuation checks will be completed by the time limit for filing the relevant Return. In some cases there may be difficulty in obtaining important information. In others the valuation issues may be inherently complex and not easily resolved. The request to check a valuation may be made so late that it is unrealistic to expect agreement to be reached in the time available.

We make it clear within CG34, a copy of which can be found on the HMRC website, that a request to check a valuation will not be processed if received less than two months before the filing date or the date the return is filed if earlier. In all cases agreement cannot be expected in less than two months from making the request and in many cases it may take substantially longer. Failure to reach agreement on a post transaction valuation check is not an acceptable reason for failing to make a Return within the time limit.