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HMRC internal manual

Capital Gains Manual

Land: valuation: CG 20: other available information - tax effect

Information on the potential tax consequences and nature of your request of the valuation is very helpful to the VOA in their initial review and prioritisation so that the VOA’s limited resources can be best deployed.

Where you have sufficient information you should provide details of the potential tax relevance of any change in the taxpayer’s valuation using the three boxes for guidance on the CG20 Form.

In directing requests you may consider whether any adjustment will be tax material (now or in the foreseeable future) or is limited by reliefs, losses or other factors.

There may be occasions where it is clear from the computation that the value will only result in an adjustment to the gain or loss position if it exceeds a different sum to that submitted due to restrictions arising from indexation or other factors and here it may be helpful (using box B) to inform the VOA that you are only concerned if the value is above or below that estimated level beyond which there is no effect on the tax liability.

Where you are requesting a ‘not negotiated’ valuation and you only require broad advice to inform risks etc you should make this clear using box C.

Your comments might include matters such as

  • the valuation range where any change will have no effect on the tax liability
  • the increased tax which will be payable if the valuation were to change, calculated in broad steps, eg each £10,000, as appropriate to the particular case
  • the size of any losses available together or part of any potential increase in the capital gain (and whether reliefs are available).

Where you already have received informal valuation advice from VOA and negotiations are needed, it would be helpful to indicate the potential tax relevance if the valuation were to change to the reported sum.