What is a post transaction valuation check? When and how can I apply for one?
This is a freeview 'At glance' guide to post-transaction valuation checks.
Capital Gains: Post Transaction Valuation Check
- HMRC offers a Post Transaction Valuation Check (PTVC) to all taxpayers.
- When HMRC has agreed the valuation of an asset following a PTVC it will not challenge the use of that valuation in a Capital Gains Tax (CGT) calculation in a tax return, unless there were any important facts affecting the valuation that were not disclosed to HMRC.
- The service can also be used in respect of a deemed disposal following a claim that an asset has become of Negligible value.
- Where HMRC do not agree a valuation, they will informally suggest alternatives.
When?
The taxpayer can only apply for a PTVC:
- After the date of the disposal relevant to CGT (or for companies, to Corporation Tax).
- Before the date by which the taxpayer has to complete the Self Assessment tax return.
HMRC advise that you should allow at least three months for them to check your valuation, therefore all applications for a valuation check should be submitted at least three months before the tax return filing deadline.
Where a PTVC has been requested for a UK residential property disposal and a response is not received in time to meet the 60-day reporting and payment deadline (30 days for disposals before 27 October 2021) an estimated return should be filed. Once the PTVC response has been received, the return should be amended if necessary.
How?
To apply to have a valuation checked the taxpayer should complete form CG34 Application for post-transaction valuation check.
HMRC will check the details on the CG34 and let the taxpayer know if they:
- Accept the value provided.
- Require further information.
- Suggest an alternative value.
Full details about the process are on the Shares and Assets valuation page on the HMRC website and on the CG34 form.
Where to send the CG34 form?
Individual taxpayers dealt with by HMRC’s High Net Worth Units, or Public Department 1 should send the completed CG34 to those offices.
Other individuals, partnerships and trusts should send the completed form direct to:
PAYE and Self Assessment
HM Revenue and Customs
BX9 1AS
Companies should send to the nominated Customer Compliance Manager, if the company has one. If they do not have one, to:
Corporation Tax Services
HM Revenue and Customs
BX9 1AX