The following articles have been extracted under a licence from HM Revenue & Customs website:
Introduction
Assets and disposals
Working out the chargeable gain
Reliefs (other than taper relief)
Allowable losses
Taper relief: qualifying holding period
Taper relief: business assets and non-business assets
Working out the tapered chargeable gains
Working out the amount chargeable to CGT
Working out the tax due
Post transaction valuation checks for CGT
Indexation allowance
Taper relief on disposals of business assets on or before 5 April 2000
Introduction
This series of articles tell you the basic rules of Capital Gains Tax (CGT) for individuals.
This article is offering a service from Revenue and Customs". This is not a Net Lawman service. We include it only for the sake of completeness. Net Lawman advice is to employ your own expert valuer, particularly for land and higher value items. We do not think employees of R&C are well motivated to save you money.
When working out your Capital Gains Tax liability, or in the case of companies, your Corporation Tax liability on chargeable gains, you sometimes have to value assets. If you use such valuations, we offer a free service to help you complete your tax return. You can ask your Tax Office to check valuations after you have made the disposal but before you make your return. Our service is available to all taxpayers, individuals, trustees and companies.
If we agree your valuations we will not challenge your use of them in your tax return unless there are any important facts affecting them that you have not told us about. Agreement to your valuations does not necessarily mean that we agree the gain or loss. We will not consider the other figures you have used until you make your tax return.
If we cannot agree your valuations we will suggest alternatives. We use specialist valuers to value some assets, mainly shares, land, goodwill and works of art. You will also be able to discuss your valuations with our valuers. You must file your tax return by the filing date printed on it even if we have not been able to agree your valuations or suggest alternatives. Your return must also tell us about any valuations that we have checked but been unable to agree.
If, after discussion, we cannot reach agreement on any valuations that you use in your tax return, you will be able to appeal to an independent tribunal (see DCA 'Appeals' leaflet).
How to get your valuations checked
If you want us to check your valuations, ask your Tax Office or any Inland Revenue Enquiry Centre for one copy of form CG34 for each valuation you want us to check. Return the completed form(s) to us together with the information and documents requested on the form. You can also attach any other information that will help us understand your valuations.
If you do not provide all the information requested on the form, we may be unable to check your valuations. If you have difficulty getting all of this information, or you are not sure how to prepare a Capital Gains computation, ask us for help.
How long will it take?
Your Tax Office, or our specialist valuers, will contact you as soon as possible after you make your application. Valuation is an exercise of judgement that can sometimes be a difficult and lengthy process, particularly if discussion is necessary.
The sooner you contact us after you have made a disposal, the more likely we will be able to reach agreement with you before you make your tax return.
We expect that it will take a minimum of 56 days to agree your valuations or to provide you with an alternative. In more complex cases it may take longer. In a few very complex cases we may not be able to provide you with any alternative valuation before the filing date for your tax return. If you want to use our service please send any forms CG34 to your Inland Revenue office at least two months before you need to make your return.
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