ERSM220080 - Valuation Issues
The Inspector's responsibility
The Inspector responsible for deciding whether amounts are
chargeable to Income Tax may need to obtain or refer to the
documents which govern the acquisition of the securities,
particularly where they are restricted securities (see
ERSM30310).
If Inspectors need to ask Shares and Assets Valuation for an
informal valuation they should:
- Indicate whether or not one of the
following elections has been made:
- ITEPA03/S425 (3) – election to ignore
exemption on acquisition for forfeitable securities – see
ERSM30370.
- ITEPA/S430 – election for outstanding
restrictions to be ignored at time of Chapter 2 chargeable event on
restricted securities – see
ERSM30450.
- ITEPA03/S431 (1) – election for all
restrictions to be ignored on acquisition of restricted securities
–
ERSM30450.
- ITEPA03/S431 (2) – election for
specified restrictions to be ignored on acquisition of restricted
securities –
ERSM30450.
- If an election has not been made, send a
copy of any agreement or other document (if available) that might
create special conditions relating to the securities acquired,
indicating whether or not there are any restrictions etc within
section ITEPA03/S423 – see
ERSM30320 &
ERSM30330.
- State the basis of the charge to tax and
indicate the relevant charging section.
- Supply a copy of the latest statutory
accounts available on file relevant to the transaction.
- Specify the holding of securities to be
valued.
- Specify the rights attaching to the
securities, and whether the restrictions are to be ignored or
not.
- Forward any valuation submitted by the
taxpayer/company.
