Getting Shares and Assets Valued for Tax

Introduction

If you need to establish the value of shares, land, or certain other assets for tax purposes, HMRC's Shares and Assets Valuation (SAV) team can help. This specialist team checks valuations for Capital Gains Tax, Corporation Tax, Inheritance Tax, and other tax matters. Understanding when and how to request a valuation from SAV can help you report the correct figures to HMRC and avoid disputes later.

What the Shares and Assets Valuation Team Does

The SAV team is a specialist unit within HMRC that values assets for tax purposes. Other parts of HMRC may contact SAV to verify whether the values you've declared on your tax returns are accurate. You can also request valuations proactively in certain circumstances.

The team handles valuations for:

• Quoted and unquoted shares
• UK land and buildings (though you should contact the Valuation Office Agency directly for these)
• Certain other assets for specific tax purposes

Assets SAV Cannot Value

SAV cannot provide valuations for several types of assets. You'll need to arrange private valuations for:

• Aircraft and boats
• Bloodstock (such as racehorses and livestock herds)
• Chattels (including antiques, art, and jewellery)
• Foreign residential property
• Foreign shares
• Intangible assets (such as intellectual property, trademarks, patents, and goodwill)

The team also does not deal with negligible value claims or provide informal valuations for PAYE purposes.

For UK land and buildings, you should contact the Valuation Office Agency rather than SAV.

Post Transaction Valuation Checks

If you've sold or disposed of assets and need their values verified, you can request what's called a Post Transaction Valuation Check. This service is available if you're:

• An individual working out your Capital Gains Tax liability
• A company calculating your Corporation Tax liability

When You Can Request a Check

As an individual, you can only request a Post Transaction Valuation Check:

• After disposals relevant to Capital Gains Tax have taken place
• Before the deadline for filing your Self Assessment tax return

How to Request a Check

You must complete form CG34 and send it to the address shown on the form. After reviewing your form, SAV may ask you for additional information to support the valuation.

Timing and Your Tax Return

SAV aims to reach an agreed valuation within 4 weeks of receiving all the information they need. However, if they need to request more information from you, the process will take longer.

It's important to note that sometimes it won't be possible to agree values before your tax return filing deadline. You must still file your return on time, entering the amount of gain or loss based on the valuation you expect SAV to agree.

What to Expect from the Valuation Process

Most valuations are settled through negotiation. If SAV doesn't agree with your proposed valuation, they will suggest a different figure and work with you to reach agreement.

If you appoint an accountant or professional valuation firm, SAV will deal directly with them. You remain responsible for the accuracy of all information provided to SAV, so make sure your adviser has complete and correct facts.

Service Standards

When SAV has received your request, you can expect them to:

• Explain why they're taking any particular actions
• Clarify why they need to meet with you or question your explanations
• Give reasons for proposing a different valuation to yours

If you or your adviser wants to meet to discuss the valuation, SAV will try to arrange this, though it may extend the usual timeframe. When you write with questions or issues, SAV aims to respond within 10 working days. If they can't meet this deadline, they'll explain the reason and tell you when to expect a full response.

If You Disagree with a Valuation

SAV settles the vast majority of valuations through negotiation. However, if you cannot reach agreement, you have options.

If you believe SAV has made a mistake or treated you unfairly, you can ask for the matter to be reviewed by the Assistant Director responsible for that part of SAV.

If you still cannot agree on a valuation after filing your tax return, the matter can be heard by the tax tribunal. You can also make a formal complaint about HMRC if you remain unhappy with how your case has been handled.

Confidentiality and Information Sharing

SAV maintains the same level of confidentiality for companies, directors, and shareholders as for all taxpayers. They will only share information with people you have authorised, except in limited circumstances allowed by law (such as during tax tribunal proceedings).

Getting Help and Further Information

HMRC publishes detailed guidance in the Shares and Assets Valuation Manual, which explains how SAV values different types of assets including unquoted shares for Capital Gains Tax and Inheritance Tax purposes.

You can contact SAV directly for advice about asset valuations, or attend one of their regular Fiscal Forums where valuation matters are discussed.

Sources

• Shares and assets valuations for tax
• Shares and Assets Valuation Manual

This article provides general guidance based on current HMRC rules. For advice specific to your situation, speak to your accountant.