Valuation: unquoted shares: is a valuation required?
A valuation is likely to be required if the shares (whether quoted or unquoted)
- were held on 31.3.1982
- were acquired or disposed of in a transaction that was not at arm’s length, see CG14540+
- have been involved in a share reorganisation
- are claimed to be of negligible value (subject to the practice described in CG13145 which allows you to accept a negligible value claim in certain cases).
SAV will not deal with hypothetical cases. You should not send a CG30 unless there has been a disposal or other event that gives rise to a capital gain or loss.
You can ask SAV for an informal valuation to check whether it is worth taking a particular issue further. For example, you may have doubts whether a transaction was an arm’s length bargain. If the amount at stake is potentially significant you can ask SAV for an opinion whether the consideration was likely to represent market value.
Since 1 April 1997 taxpayers have been able to request post transaction valuation checks using form CG34 (CG16600). If you receive such a request, you will need to complete a CG30 in the normal way.
SP8/92 allows taxpayers to defer valuations in cases involving holdover relief. For detailed instructions see CG67130+.
If a taxpayer disposes of shares which were the subject of a holdover relief claim made in respect of a transfer between 1 April 1982 and 5 April 1988 they may be able to claim relief under TCGA92/SCH4, see CG16980+. SAV may have given an informal opinion which allowed the holdover relief claim to be accepted but the market value at the date of gift will not have been agreed. You will now need a formal valuation at the time of the transfer in order to calculate the amount of the held over gain.
You may also need to consider any operational guidance for your Directorate before obtaining a valuation.