SVM24044 - Share Valuation Manual: Self Assessment
Post Transaction Valuation Checks (PTVCs)
Overall Approach to PTVC Valuations
The overall approach is that we should arrive at high quality valuations under the PTVC system with due regard to cost effectiveness.
Valuers should not feel pressured to accept dubious valuations in view of the SA return deadlines. If research is necessary or questions need to be asked about the valuation, neither should be foregone simply because the valuation is a PTVC case.
If the valuation offered cannot be accepted we should suggest and negotiate alternatives. If agreement cannot be reached in time for the SA return delivery date the Inspector should be informed and negotiations should continue. However, you should ensure that, in these circumstances the Inspector does open an enquiry at the first possible opportunity.
Our approach also needs to be cost effective and efficient. If one component of the form CG34 information requirements is missing, we should not confine ourselves to asking for the obviously missing information without addressing what other valuation information may be required when the PTVC can proceed. Our aim should be to ask all the questions that can be asked in a comprehensive fashion at the very outset.
We also need to consider whether it is worth questioning the valuation offered, for example where there is obviously no tax at stake at all.
The intention of the PTVC is to deliver agreement to as many valuations as possible before the deadline for the taxpayer to file the SA tax return. This means we must try to avoid any unnecessary delay. However, you should be aware that the Press Release announcing this scheme said that:
"Valuation is an exercise of judgement that can be a difficult and lengthy process, particularly if discussion is necessary.
"We expect it will take a minimum of 56 days to agree your valuations or to provide you with an alternative. In more complex cases, it may take longer. In a few very complex cases we may not be able to provide you with any alternative valuation before the filing date for the tax return."
(The 56 days mentioned in the Press release runs from the receipt of the form CG34 in the tax office.)
Of course the terms of the Press Release should not be seen as a reason to accord tardy treatment to post valuation checks. You should endeavour to see that post transaction check cases are handled with some speed but not in haste: it is important that in all worthwhile cases the value agreed is one that a conscientious valuer would be content to accept were the case not a post transaction check and that all appropriate research has been completed first.
