Chapter CG74300
| Published date | 12 March 2016 |
| Record Number | CG74300 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
This guidance covers the process for making a referral to the Valuation Office Agency.
In particular, it explains when, ‘not negotiated’, and, ‘negotiated’ valuations should be obtained.
It set outs when and how form CG20 should be completed.
The guidance also confirms the expected timescales and format of responses from the Valuation Office Agency.
2. Overview
If you need advice from the Valuation Office Agency for Capital Gains Tax or for Corporation Tax on chargeable gains in relation to:-
- any valuation of land in the United Kingdom
- any apportionment of consideration to land in the United Kingdom
you should send a form CG20 to the Valuation Office Agency appropriate for the location of the property, as detailed on the intranet page entitled, ‘Contacting the Valuation Office Agency’.
See however CG74000, Section 4 where the land is in Northern Ireland and CG75800 for land outside the UK. A copy of the form should be retained with your papers.
In more complex cases a covering memo should be sent with form CG20 explaining why the land valuation is needed.
Form CG20 can be obtained using Forms and Letters in SEES.
Advice on completing form CG20 is given below.
‘Not negotiated’ and negotiated valuationsThe circumstances in which you should ask for a ‘not negotiated’ valuation are explained at Section 5 below while the circumstances in which you should ask for a negotiated valuation are explained at Section 7 below.
Unagreed valuationsIf the Valuation Office Agency is unable to reach an agreement with the customer about any land valuation or apportionment they will report to you a valuation or apportionment which is unagreed. The procedures for dealing with that unagreed valuation are at CG74500.
3. When to use form CG20
Form CG20 should only be used to obtain for the purposes of Capital Gains Tax or Corporation Tax on chargeable gains:-
- a valuation of land in the United Kingdom, or
- an apportionment of any consideration given for assets which include land in the United Kingdom.
You should use one form CG20 for each property or block of properties except where a number of separate properties are disposed of in one transaction. If you use a CG20 for a number of properties you should:-
- attach a schedule of the properties involved, and
- send it to the Valuation Office Agency appropriate to the area in which the highest returned value property is located. For the appropriate Valuation Office Agency office see the intranet page entitled, ‘Contacting the Valuation Office Agency’
If the number of valuations makes the case suitable for the Land Portfolio Valuation Unit, follow the guidance at CG74050.
The Valuation Office Agency will arrange for any work that needs to be done if the valuations need to be co-ordinated between different Valuation Office Agency offices.
Form CG20 is not to be used for the following valuations:-
- employment income valuations, see CG16270 and EIM08001 onwards
- capital allowance valuations, see CA12300 onwards
- land and buildings held as trading stock where a valuation is required to determine trading profits or losses, see BIM51500 onwards
- assets other than land and buildings
- unquoted shares
- valuations which fall within CG74050 (including requests for multiple properties or portfolios)
- the valuation of the retained interest for a part disposal where the practice in CG71850 applies, as in such cases no such valuation is required.
Form CG20 is not to be used for the following valuation requests:-
- for pre-enquiry requests for ‘risk valuations’ where informal liaison arrangements are in place between your business area and the Valuation Office Agency.
- for requests for a negotiated valuation where the Valuation Office Agency has previously been asked to give an opinion on a ‘not negotiated’ basis; see Section 7 below.
4. Pre-enquiry ‘risk valuations’
Valuation Office Agency support selection strategies by providing a fast informal valuation service at the risk assessment stage.
Requests for pre-enquiry CG valuations of land should be made by memo or standard stencil, clearly identifying the valuation requirement. It is often helpful to supplement the request with a copy of the CG pages and the computation.
Completion of a CG20 is not necessary in these pre-enquiry requests.
Transmission of pre-enquiry valuation requests by RIS should be made by email to the SVT Hub at svthub@voa.gsi.gov.uk for all properties in England, Wales and Scotland - as outlined in Referral of requests to Valuation Office Agency.
Large Business and WMBC have their own protocol to refer requests via the Land Portfolio Valuation Unit.
Where there are multiple properties see CG74050.
Valuation Office Agency will interrogate their information sources and offer an informal opinion on value and any guidance. A decision to take the case up for formal enquiry can be deferred, subject to time limits, until the informal advice is received. A named valuer in Valuation Office Agency will be appointed to the case from the outset.
...
To continue reading
Request your trial