CG74000 - Land: valuation: introduction: scope of chapter

  1. Introduction

The guidance in this part explains the procedures for obtaining a valuation of land for the purposes of Capital Gains Tax or Corporation Tax on chargeable gains.

In particular, if the Valuation Office Agency cannot negotiate an agreement on the value of land you must follow the guidance in CG74500 before you close your enquiry.

The first section of this guidance deals with land in the United Kingdom of Great Britain and Northern Ireland. It explains:-

  • the Valuation Office Agency’s responsibility; see Section 3 below,
  • the valuation of land in Northern Ireland, see Section 4 below,
  • what valuations you need to refer to the Valuation Office Agency; CG74050,
  • what valuations you are authorised to accept; see CG74050,
  • apportionments; see CG74150,
  • the basis on which land is valued; see CG74200,
  • undivided shares; see CG74200,
  • what information you should provide to the Valuation Office Agency; see CG74300,
  • what procedures you should follow to obtain a land valuation; see CG74300,
  • what you do if the Valuation Office Agency is unable to reach agreement to a valuation, see CG74500.

If the land is situated outside the United Kingdom of Great Britain and Northern Ireland, the guidance is at CG75800. For this purpose land in the Isle of Man or Channel Islands is regarded as situated outside the United Kingdom of Great Britain and Northern Ireland.

  1. Scope of valuations

TCGA92/S288 (1)

TCGA92/S288 (1) defines land for the purpose of chargeable gains as including messuages, tenements, and hereditaments, houses and buildings of any tenure.

Similarly, for the purpose of this guidance, valuations of land include valuations of any buildings standing on that land. Also valuations of land will include the value of any fixed plant or machinery.

The guidance applies where you need to value any freehold or leasehold interest in land. The guidance also covers any licences over land or any jointly held interests in land.

The guidance also applies to the Scottish equivalents of these interests.

  1. The Valuation Office Agency

Where you need advice on the valuation of land located in England, Scotland or Wales it should be obtained from the Valuation Office Agency.

The Valuation Office Agency is an executive agency, sponsored by HM Revenue & Customs and supported by The Adjudicator’s Office.

The Valuation Office Agency is contracted to provide valuation and related services to HM Revenue & Customs through their District Valuer Services (DVS) arm.

DVS valuers are professionally qualified RICS Chartered Surveyors in the UK.

The guidance at CG74050 sets out when and how to make a referral to the Valuation Office Agency.

The Valuation Office Agency is available to offer assistance and advice on land valuation matters and may also have records of transactions in land which can be obtained using the form called “Request for Property Transaction Information” (previously known as form 116) which can be found in SEES.

  1. Land in Northern Ireland

The Valuation Office Agency does not deal with land in Northern Ireland. Where you need a valuation of land in Northern Ireland you should, once you have followed the authorised approval route and obtained permission, forward a form CG20, see CG74300, to

Land and Property Services Northern Ireland
HQ Client Services
Valuation Services
Lanyon Plaza
7 Lanyon Place
Belfast
BT1 3LP

The form CG20 should be marked for the attention of the Valuation Service. Their telephone number is 028 9033 6432.

All requests should be accompanied by a contact sheet providing the following caseworker information:-

  • Full name
  • Full postal address
  • Telephone number
  • External email address
  • Limit Order number and Account number
  • Cost Centre code.

Failure to provide the contact sheet will result in the valuation request being returned.

  1. Reliance on valuations and negotiations

If you obtain a valuation from the Valuation Office Agency or the Land & Property Services Northern Ireland you must rely on that valuation.

You must not compromise the advice given by trying to negotiate between the Valuation Office Agency’s (or the Land & Property Services Northern Ireland’s) valuation and the customer’s valuation.

As caseworker, your role is to establish all the facts relevant to the land and its tenure. The Valuation Office Agency (or the Land & Property Services Northern Ireland) are responsible for any negotiations on the valuation itself. You should not offer any opinion on the valuation.