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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Land: valuation: CG 20: description of taxpayers interest

It is the taxpayer’s interest in the property AT THE DATE OF VALUATION that is required in this section and NOT the interest held at the date of disposal, which may be different.

Interests in land may be either freehold or leasehold, but out of these interests may be carved many subsidiary interests which may affect the valuation of the property.


If the interest to be valued is a leasehold you should provide details of the lease, namely

  • date of commencement
  • duration
  • rent at valuation date
  • dates of rent review
  • liability for outgoings including repairs
  • any restrictive covenants.

All of these items may affect the valuation. An example would be

‘A 50 year lease from 25 December 1975, rent of £5,000 per annum, subject to review every 5 years, tenant does all repairs.’

A copy of the lease should be provided if it is available.

Undivided shares

You should also consider whether the Valuation Office Agency should be asked to value the entirety of the land or an undivided share in the land, see CG74240+. Where the taxpayer’s interest is an undivided share, please see CG74251, and CG74351.

Other factors

Include details of any other matters affecting the property which might have a bearing on the valuation, such as rights of way over the property, restrictive covenants, licenses etc.