On this page
On receipt of a request for a not negotiated valuation or apportionment the caseworker should examine the papers to decide which of the following scenarios apply:-
- sufficient information is available to provide a valuation;
- further essential information is required;
- the case is complex or sensitive and warrants treatment as a request for an agreed valuation (see para 6.29).
Where information is lacking the DV should make such assumptions as seem reasonable and unlikely to give rise to substantial error in valuation. Where the information available to the DV does not enable the making of reasonable assumptions and where in particular there is uncertainty concerning the extent of the subject property, the nature of any interest to be valued and/or the nature of any subordinate interests, rights of occupation or onerous restrictions, the DV should notify the Inspector within 14 days of receipt of the case, clearly specifying the information required and requesting the Inspector to obtain it. The case should then be cancelled.
When the papers are returned to the DV with the required information a new case should be opened and the appropriate procedures followed.
The Inspector may be constrained by time limits in dealing with an enquiry and accordingly may send a covering memorandum with the CG20 requesting an urgent reply. In very urgent cases the request may be made by telephone. The DV should comply with such requests and if essential information is lacking must make appropriate assumptions without further enquiry, stating such assumptions in the reply to the Inspector.
The standard time limit for providing a not negotiated valuation is 30 working days from receipt of the case. If a case is not reported within this time limit a progress report should be sent to the Inspector within 30 working days of receipt of the case and thereafter at 20 day intervals. All cases should be reported within three months from receipt of the case.
There must be no internal inspection of the property nor contact with the taxpayer or agent. An external inspection may be made if necessary but care should be taken to avoid delay.
If a valuation has been put forward by the taxpayer the DV should decide on the basis of any information provided by the taxpayer, together with knowledge of the property and office records, whether or not the figure may be accepted. If the taxpayer's valuation can be accepted the figure should be reported to the Inspector 'as returned'. If the taxpayer's figure cannot be accepted, or no valuation has been put forward by the taxpayer, then the DV should report his opinion of value endorsed 'not negotiated'.
The DV should normally report on form VO 1011 (see Appendix 5) endorsed 'as returned' or 'not negotiated', as appropriate. The report should clearly state the basis of valuation and detail any underlying assumptions particularly where the value reported is substantially different from that returned.
Where assumptions have been made that may be value significant, ie. nature of tenancies, the Inspector should be requested to advise the taxpayer of those assumptions when contacting him (see para 6.30).
In some cases the DV may consider that due to the complexity or sensitivity of a particular valuation that it would be preferable to treat the reference as a request for an agreed valuation. (This would enable the DV to obtain all relevant information from the taxpayer and carry out an internal inspection).
If so, the DV should, within 14 days of receipt of the case, explain the situation to the Inspector and ask whether there is any objection to treating the reference as a request for an agreed valuation. If the Inspector has no objection, the DV should alter the credit type to 02 and proceed in accordance with Part 4 of this Section.
In all cases where either the valuation returned by the taxpayer or the DV's opinion of value reflects hope value for an alternative use, the valuations should be regarded as complex. It will be necessary for the DV to ascertain the full planning position before putting forward any opinion of value in such cases.
The Inspector will seek to agree with the taxpayer a computation of the chargeable gain or allowable loss and, having revealed to the taxpayer the DV's valuations, will indicate that the DV's advice has been given on the basis of the information presently available particularly with regard to any assumptions made. When appropriate, the Inspector will then be able, at the earliest practicable date, to make an assessment on which payment of tax can be secured, and on which in due course interest may run.
Where the taxpayer is not prepared to accept the DV's valuation the Inspector may return the papers, together with any comments made by the taxpayer about the DVs assumptions, and request that values be negotiated.