If a person disposes of unquoted shares to a connected person or
otherwise than by way of a bargain at arm’s length, we
negotiate the value with that person or the agent acting for him.
There are, however, regulations which allow any person whose CGT
liability is affected by the valuation to be joined in the formal
determination of the value. E.g. There is a gift between connected
persons and the benefit of holdover relief has not been claimed.
The donee can apply to be joined in the proceedings. If such an
application is made, you will have to negotiate a value with both
the donor and the donee (or their agents).
If you are informed that the donee in such circumstances has
applied to be joined in the proceedings, you should refer the case
to your manager. Such applications are likely to be very
infrequent. The background is given in the CG Manual at
CG16400+.
| Additional Guidance: SVM150000 |
