CTM15330 - Distributions: general: valuations

You may need to ask District Valuer Services for assistance in some cases involving distributions. These cases are those where land in the UK, or an interest in such land, is transferred to or from a company, giving rise to a distribution. You will in any case need to refer to District Valuer Services to check that the disposal has occurred at market value (CG74300 onwards). This is necessary to establish whether a distribution arises and is also necessary in connection with the chargeable gains position of the company or member.

You should not use Form CG20 in these cases. Your request for an informal valuation from District Valuer Services must:

• identify the land involved,
• state that the request is to quantify liability under the distributions provisions,
• specify the date at which you need District Valuer Services to value the land or interest in land,
• name the company and the member concerned,
• specify the precise interest you want District Valuer Services to value,
• give details (if you have them) of the date the transferor bought the land, and the cost price,
• include a copy of any tenancy agreement or ‘licence to occupy’ in force immediately prior to the transfer to the member (but bear in mind CTM15250),
• state the consideration paid by the member to the company for the transfer.

If the company or the member disputes the informal valuation, you should ask them to agree a negotiated valuation with District Valuer Services. If appropriate for distributions made before 6 April 1999, you can raise an estimated assessment under ICTA88/SCH13.

If the company/member and District Valuer Services cannot agree on a valuation District Valuer Services will provide a ‘defendable on appeal’ valuation. You should send any such valuation to CTIAA (Technical), with the company file and a summary of the position.

For assistance with the valuation of shares or other assets see CG16200 onwards.