Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Compliance Handbook

From
HM Revenue & Customs
Updated
, see all updates

Information & Inspection Powers: Inspection Powers: Valuation etc inspections

The scope of what you can inspect for valuation purposes depends on the tax position you are checking.

An officer may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably required for the purpose of checking any person’s position regarding

  • income tax or
  • corporation tax.

An officer may also enter premises and inspect the premises and any other property on the premises for the purpose of valuing, measuring or determining the character of the premises or property if the valuation, measurement or determination is reasonably required for the purpose of checking any person’s position regarding

  • capital gains tax,
  • corporation tax in respect of chargeable gains,
  • inheritance tax,
  • stamp duty land tax or
  • stamp duty reserve tax.

‘Premises’ here may include a dwelling.

Valuation inspections may only be carried out if

  • the inspection is at a time agreed by a relevant person or
  • the inspection has been approved by the tribunal.

Inspection at a time agreed by a relevant person

The inspection must be carried out at a time agreed by a relevant person and that person must have been given a notice in writing of the agreed time of the inspection. A relevant person here means

  • the occupier of the premises or
  • if the occupier cannot be identified or the premises are vacant, a person who controls the premises.

Seeking tribunal approval

If you decide to seek tribunal approval of an inspection notice, see CH25540 for the general requirements. You must also ensure that

  • you give notice of the application to the person whose tax position is the subject of the inspection and to the occupier of the premises, if different, and
  • you have given

    • the person whose tax position is the subject of the inspection a reasonable opportunity to make representations to you about the inspection, and
    • the occupier of the premises a reasonable opportunity to make such representations (unless the tribunal is satisfied the occupier of the premises cannot be identified), and
  • you have given the tribunal a summary of the representations made by the person and/or the occupier.

Inspection approved by tribunal

If the tribunal is satisfied that, in the circumstances, the inspection is justified, any relevant person specified by the tribunal must be given a written notice giving at least 7 days’ notice of the time of the inspection. That notice must state

  • the possible consequences of obstructing the officer in the exercise of the power, see CH25700, and
  • that the notice has been approved by the tribunal.

At the inspection

An officer seeking to carry out such an inspection must produce evidence of the authority to carry out the inspection if asked to do so by

  • the occupier of the premises, or
  • any other person who appears to the officer to be in charge of the premises or property.

An officer may take along to the inspection a person who the officer considers is needed to help with the valuation, measurement or determination. That person may enter and inspect the property with the officer. That person need not be an HMRC officer but must meet HMRC’s data protection obligations.

FA08/SCH36/PARA12A

FA08/SCH36/PARA12B

FA08/SCH36/PARA13