HMRC SDLT: Guide on Valuation Procedures for Compliance and Enquiry Cases in the UK
Compliance: Liaison – HMRC Internal Manual
This section of the HMRC internal manual focuses on the principles and concepts of compliance liaison. It provides guidance for HMRC staff on how to effectively communicate and collaborate within the organisation to ensure compliance with tax regulations.
- Emphasises the importance of internal communication for compliance.
- Outlines strategies for effective liaison between departments.
- Provides guidelines for maintaining regulatory adherence.
- Focuses on the role of compliance in organisational efficiency.
Read the original guidance here:
HMRC SDLT: Guide on Valuation Procedures for Compliance and Enquiry Cases in the UK
Valuation Office: General Information
When there is an inquiry that requires a valuation, the compliance caseworker in charge will remain responsible for the inquiry. The valuer’s role will be to provide assistance based on the caseworker’s instructions.
When is a Valuation Needed?
A valuation may be necessary in the following situations:
- If a transaction is not conducted at arm’s length and there are concerns that the price does not reflect market value.
- If a transaction is just below a certain threshold and the purchase price has been divided between land and other assets.
- If there is suspicion that stamp duty land tax has been unfairly lowered by manipulating asset values.
- If the payment involves something other than cash, such as assets or services.
It is essential that the compliance team and the valuer work closely together during the inquiry. The progress of any valuation related to the inquiry should be monitored regularly to ensure that the valuer can reach a resolution without unnecessary delays.
Shares and Assets Valuation (SAV)
The Shares and Assets Valuation (SAV) department values various types of assets, including the following:
- Unquoted shares and securities: These are shares that are not listed on any stock exchange.
- Goodwill: This refers to the reputation and customer base of a business.
- Residential property outside the UK: This includes homes and flats located in other countries.
- Ships, aircraft, caravans, and similar items: These are vehicles that are not land-based.
- Bloodstock or livestock: This refers to horses and other farm animals.
- Patents or copyright: These are legal rights to inventions or creative works.
- Know-how and other types of intellectual property: This covers skills and knowledge that are valuable to a business.
- Rights to deferred consideration from other disposals: This includes future payments expected from previous sales.
SAV offices are located in Edinburgh and Nottingham. For more information on which office to contact, refer to the Shares Valuation Manual.
Valuation Office Agency
The Valuation Office Agency (VOA) provides guidance on the valuation of land and buildings. They have nine District Valuer Services Units that cover England, Scotland, and Wales. Their services include:
- Valuations of land and buildings: This covers all types of properties within England, Scotland, and Wales, including commercial properties outside the UK.
- Apportionment of sale prices: This involves breaking down sale prices for land and buildings in England, Scotland, Wales, and commercial properties elsewhere.
- Valuations of large land portfolios: This includes assessments of extensive holdings of land.
- Valuations of unascertainable consideration: This refers to rights that involve uncertain amounts from the sale of land and buildings.
- Valuations of lordships of the manor: This pertains to specific property rights associated with historical manorial estates.
- Valuations of free-standing plant and machinery: This includes assessing the value of equipment that is not permanently attached to a building.
In addition to valuations, the VOA can provide helpful information, such as:
- Details of property transactions: Information regarding past sales or purchases.
- Rating assessments: Information on valuations for council tax and business rates.
- Council tax assessments: Details about council tax bands and calculations.
For more information and guidance, you can visit the VOA website at VOA Website.