RE1861 - Valuation of gifts of land and buildings

If you enquire into a claim (see RE1862 in relation to requests for a Post Transaction Valuation Check - PTVC) a memo should be sent to the Valuation Office Agency (VOA) providing the following details.

1. a statement that the valuation requested is required for the purposes of determining the amount of relief under Chapter 3, Part 8 ITA 2007 (individuals) or Chapter 3, Part 6 CTA 2010
2. whether a 'negotiated' or 'not negotiated' valuation is required
3. the taxpayer's name and address
4. the name, address, telephone number and reference of person with whom negotiations are to be conducted (if necessary)
5. the date of disposal (the valuation date)
6. the name, address & telephone number of the charity acquiring the land (to assist in making an inspection, if necessary)
7. a description of property to be valued
8. sufficient information to identify the property, and in cases involving undeveloped land, a suitable plan
9. whether the interest transferred is freehold or leasehold
10. if leasehold, provide the date of commencement of the lease, the term of the lease, the rent at valuation date, dates of rent review, liability for outgoings including repairs, any restrictive covenants, a copy of the lease if available
11. if the property is let at the valuation date, provide full details of the lease(s) or tenancy as described in (11) above
12. the valuation provided by the claimant and a copy of any valuation report obtained
13. the cost & date of acquisition of the land and details of any improvements made
14. details of any consideration received by the donor. Consideration may include the proceeds of a sale to the charity at undervalue or the value of a lease granted to the charity on beneficial terms. In the case of a lease on favourable terms provide full details of the lease as described in (11) above
15. details of any interest in the property subsequently received by the donor or any connected person that you consider could potentially amount to a disqualifying event within Section 587C(8) ICTA 1988. If this involves a lease on apparently favourable terms provide full details of the lease as described in (11) above. Make clear to the valuer if you require an opinion on whether the interest (such as terms of the lease-back) was for full consideration or not
16. if applicable, the amount by which the valuation offered could be reduced without there being any effect on the amount of tax payable
17. any other information that you feel may be relevant to the valuation offered

The Valuation Office Agency will acknowledge the request.

If the Valuation Office Agency is able, they will confirm their agreement to the donor’s valuation immediately, but there may be circumstances in which they will report "No question need be raised" because the preferred valuation is within a range that will have no tax effect.

If the Valuation Office Agency is unable to reach an agreed valuation then an unagreed valuation will be reported. On receipt of such a report, all details relevant to the claim should be sent to HMRC Charities to review before any closure notice is issued.

Additional information on procedures for obtaining valuations is available at SVM115010 and SVM115020