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HMRC internal manual

Shares and Assets Valuation Manual

Information Standards: Valuations to which the Finance Act 1973 Legislation applies

Capital Transfer Tax/Inheritance Tax

All valuations of unquoted shares and securities under s.160 IHTA 1984, whether on death, on lifetime transfer or charges in connection with non interest in possession settlements (also for any valuation under s.7(5) FA 1894 for Estate Duty purposes on all deaths on or after 6 July 1973).

Capital Gains Tax

All valuations under s.272(1) TCGA 1992 (or the corresponding earlier statutory provisions) arising out of a disposal on or after 6 July 1973. This includes cases where an acquisition value needs to be determined at a date prior to 6 July 1973, even if a market value had been determined for the purposes of a contemporaneous disposal under the pre-FA 1973 information standards, for example on a gift or on death (prior to 31 March 1971 - see below).

There are two other points to bear in mind.

  • The original computation of the chargeable gain stands for the part-disposal before 6 July 1973.
  • But the information provisions are applied for the purposes of ascertaining the gain on the subsequent disposal(s) [Para 5 Sch 11 TCGA 1992].

In practice valuers should not investigate the possibility of reopening acquisition values prior to 6 July 1973 unless the point is raised by the taxpayer or agent.

Stamp Duty and Income Tax charges under section 62 ITEPA.

The provisions of s.272(3) do not, in terms, apply to valuations for Stamp Duty or Income Tax under section 62 ITEPA, except for ITEPA purposes where an election under section 431 has been made.

Income Tax - other than section 62 ITEPA

The new employment related securities legislation introduced in 2003 adopts, in section 421 ITEPA, the same standard as for CGT purposes.

  Additional Guidance: SVM150000