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HMRC internal manual

Shares and Assets Valuation Manual

HM Revenue & Customs
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Capital Gains Tax procedures: negotiations with those acquiring shares

If a person disposes of unquoted shares to a connected person or otherwise than by way of a bargain at arm’s length, we negotiate the value with that person or the agent acting for him. There are, however, regulations which allow any person whose CGT liability is affected by the valuation to be joined in the formal determination of the value. For example there is a gift between connected persons and the benefit of holdover relief has not been claimed. The donee can apply to be joined in the proceedings. If such an application is made, you will have to negotiate a value with both the donor and the donee (or their agents).

If you are informed that the donee in such circumstances has applied to be joined in the proceedings, you should refer the case to your manager. Such applications are likely to be very infrequent. The background is given in the CG Manual at CG16400+.

  Additional Guidance: SVM150000