SVM24041 - Share Valuation Manual: Self Assessment

Post Transaction Valuation Checks (PTVCs)

To assist taxpayers in completing their SA tax returns, taxpayers may submit any proposed CGT valuations to the Inspector for "checking" before they submit their tax return.

Inspectors are required to refer these valuations to SV in accordance with existing instructions. This procedure means that in some cases valuations can be accepted or agreed without the need for a formal 'enquiry' into the return. This service was introduced with effect from 1 April 1997.

Taxpayers request a valuation check by submitting a completed form CG34 to their Tax District. The scheme applies to all types of asset, not just those handled by SV.

As the service is intended to assist with the preparation of the SA return, it excludes valuations needed for the computation of a capital loss if that capital loss is not to be included on the SA return.

Main Terms and Conditions

We only check valuations provided by the taxpayerWe do not provide valuations on demand
We only check valuations after the disposal has taken placeWe do not provide pre-transaction valuations
We normally only check valuations if all the information and documents on form CG34 are providedUnless it would be unreasonable to expect such
It is recognised that it may not be possible to agree a valuation or to suggest an alternative before the filing date for the tax returnThis will not be accepted as a legitimate reason for the taxpayer to make a late return

If SV agrees a valuation, the Revenue will not challenge the use of the valuation in the tax return of the taxpayer concerned, unless there are important facts affecting the valuations that the taxpayer has not disclosed.

The taxpayer must submit the form CG34 to the appropriate tax district. If a taxpayer makes a direct approach to SV, you should ask him/her to complete a form CG34 with the required details and submit it to the Inspector for onward transmission to SV. [Thus the Inspector will be aware of the prospective CGT liability and will have the opportunity (briefly) to consider the liability ahead of the filing of the SA return.]