A disposal of shares may attract full or partial relief from
Capital Gains Tax. It is for the Inspector to determine which
reliefs are available and quantify the amount due. However, as part
of the risk assessment process valuers need to be aware of the tax
at stake in each case. See Chapter 116 of this manual
SVM116000 Case Selection, Handling and
Settlement.
Details of all exemptions and reliefs can be found in the
Capital Gains Tax Manual and the Venture Capital Schemes Manual
(VCM).
If the parties to a transaction have claimed the benefit of
hold-over relief on Help Sheet IR295 (available on the Internet)
you should seek to close the valuation without agreeing a figure
with the parties. Help Sheet IR295 asks the taxpayer to state the
amount of the gain to be held over. The notes say that the
held-over gain should be calculated and, if possible agreed.
However, the note explains that where unlisted shares are involved
complicated and unproductive work can be avoided by electing to
defer agreeing the share values under Statement of Practice SP8/92.
See the CG Manual at CG67130.
If the taxpayer chooses to defer the valuation under SP8/92,
the Help Sheet makes it clear that the provisional values used for
the holdover claim are not binding on claimants or HMRC.
If the taxpayer declines to take advantage of SP8/92, you
must proceed with the valuation. You should obtain a copy of the
completed Help sheet from the Inspector before you proceed.
| Additional Guidance: SVM150000 |
