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HMRC internal manual

Inheritance Tax Manual

HM Revenue & Customs
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Land valuation cases: when to consider a NOD

You will need to consider issuing a Notice of Determination (NOD) if you receive:

  • a VO 1103, interim reportfrom the Valuation Office Agency (VOA) (IHTM23002), telling you that negotiations have reached an impasse and asking whether a determination of value is warranted.
  • very rarely, a Defendable on Appeal Report (IHTM23090) form the VOA (IHTM23002)

VO 1103 - interim report - negotiations have reached an impasse

If you receive an interim report from the VOA that says that negotiations have reached an impasse you should consult:

  • Your manager, if you work in Compliance
  • Service Technical Support (STS), if you work in Service (IHTM23090).

If the impasse relates to a point of principle, you should refer the matter to Litigation to consider before you send any response to the VOA. In other cases it may be useful to consult Litigation or Technical at an early stage, before you take any action. For example, where the VOA reports a large decrease and the basis of valuation is correct, the manager or STS may wish to discuss the implications with Technical.

Once you have taken advice you should reply immediately to the VOA.

If a determination is warranted on the grounds of

  • the tax at stake, or
  • on a point of principle (IHTM37080)

you should ask the VOA for a Defendable on Appeal Report. At the same time you should tell the taxpayer or agent that we have asked the VOA to provide us with a formal valuation report. You should explain you have done this because discussions with colleagues in the VOA have apparently ended without agreement. And, that your aim is to resolve the impasse, if necessary, before the independent valuation court, the Lands Tribunal.

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Defendable on Appeal Report

Defendable on Appeal Reports are normally sent direct to Litigation to consider litigation action (IHTM23225). If you receive a Defendable on Appeal Report you should refer it immediately to Litigation via your manager or STS without waiting for the file if it is not to hand.

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Taxpayer’s uplift in value

If the taxpayer’s own valuation of the property has increased and it is worthwhile you should consider

  • issuing a provisional calculation or
  • inviting them to place money on deposit

adopting their revised value. You should make it clear that this is an interim, without prejudice measure.