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HMRC internal manual

Shares and Assets Valuation Manual

Self Assessment: Post Transaction Valuation Checks (PTVCs) - Overall Approach to PTVC Valuations

The overall approach is that we should arrive at high quality valuations under the PTVC system with due regard to cost effectiveness.

Valuers should not feel pressured to accept questionable valuations in view of the proximity of SA return deadlines. If research is necessary or questions need to be asked about the valuation, neither should be foregone simply because the valuation is a PTVC case.

If the valuation offered cannot be accepted SAV should suggest and negotiate alternatives. Our approach also needs to be cost effective and efficient. If one component of the form CG34 information requirements is missing, we should not confine ourselves to asking for the obviously missing information without addressing what other valuation information may be required when the PTVC can proceed. Our aim should be to ask all the questions that can be asked in a comprehensive fashion at the very outset.

We also need to consider whether it is worth questioning the valuation offered, for example where there is obviously no tax at stake at all.

The intention of the PTVC is to deliver agreement to as many valuations as possible before the deadline for the taxpayer to file the SA tax return. This means we must try to avoid any unnecessary delay. However, you should be aware that the Press Release announcing this scheme said that:

“Valuation is an exercise of judgement that can be a difficult and lengthy process, particularly if discussion is necessary.”

“We expect it will take a minimum of two months to agree your valuations or to provide you with an alternative. In more complex cases, it may take longer. In a few very complex cases we may not be able to provide you with any alternative valuation before the filing date for the tax return.”

(The two months mentioned in the Press release runs from the receipt of the form CG34 in the tax office.)

You should endeavour to see that post transaction check cases are handled with some speed but not in haste: it is important that in all worthwhile cases that the value agreed is one that a conscientious valuer would be content to accept were the case not a post transaction check and that all appropriate research has been completed first.

Filing date for returns

In cases where valuers are engaged in negotiations there will be situations where the deadline for submitting a return has passed and you, as caseworker, become aware that a return has been submitted. Do not proceed with the valuation. Contact the instructing office and provide them with details of the latest values proposed by the taxpayer and SAV.

Do not proceed with the valuation unless authorised by the instructing office, who should confirm that an enquiry has been opened.

  Additional Guidance: SVM150000