BIM51585 - Builders, property dealers &
developers: Valuation: Not negotiated valuation: Not accepted
Where the District Valuer does not agree the valuation 'as
returned' but reports a 'not negotiated' valuation, it may become
necessary to ask for a negotiated valuation (see
BIM51600).
These cases can throw up difficult taxation, accountancy and
practical problems which may lead to a contentious appeal hearing
at which the District Valuer's presence as an expert witness would
be required. The accounts valuation should normally, therefore, be
accepted where-
- there is only a small difference in
percentage terms between the District Valuer's not negotiated
figure and the accounts figure (if the taxpayer is aware that you
have asked the District Valuer for an opinion, you should explain
that you will accept the returned profit or loss without prejudice
to the valuation put forward by the District Valuer). Each case
will need to be reviewed on its own merits but normally, a
difference not exceeding 10% may be accepted; or
- there is no current tax effect.
