CG16430 - Valuation: who is an interested party

Regulations 8 and 15

A person is entitled to

• apply to be joined in an appeal in which a market value or an apportionment is a material question, or
• apply to the Tribunal to determine a market value or apportionment

when that market value or apportionment may affect that persons liability to Capital Gains Tax (or Corporation Tax on chargeable gains) for any period.

So interested persons for the purpose of the legislation are limited to those persons whose liability in respect of chargeable gains would be affected by the amount of any valuation or apportionment.

Common examples are

• vendor and purchaser in a transaction between connected persons or a transaction which is not a bargain at arms length.
• the vendor and purchaser of a number of assets sold in a composite transaction where the price paid needs to be apportioned between the various assets.
• the joint owners of an asset where the share held by each needs to be valued at a particular date.

Remoter issues

A person is not an interested party merely because they own a similar asset to the one that has to be valued. For example, where the valuation is of a piece of land the owner of a neighbouring similar piece of land is not an interested party.

Shares

Persons who own shares in the same company are not interested parties for the purpose of the regulations even if their holdings are identical in size. Regulation 15 limits interested parties to those persons whose own Capital Gains Tax liability would be affected by a valuation or apportionment. A persons own liability could not be affected by a valuation of another persons shares even if the size of the holdings is identical.