CG16450 - Valuation: more than one interested person: appeals: regulations apply

The regulations apply to appeals against the following

• assessments to Capital Gains Tax
• assessments to Corporation Tax on chargeable gains
• decisions on claims relating to chargeable gains.

The regulations do not apply to Income Tax. But you should try to ensure that any market values or apportionments which are determined for Income Tax purposes are consistent with

• other valuations or apportionments made for Income Tax purposes and
• any valuation or apportionment determined on the same matter for Capital Gains Tax purposes.

The regulations apply in two circumstances

• when a question of the market value or of the apportionment of any amount or value is a material question in an appeal regulation 8 allows any interested party to be joined in that appeal, see CG16430.
• where a market value or an apportionment of any amount or value has not yet been a material question in an appeal regulation 9 allows an interested party to apply to the First-tier Tribunal for a determination, see CG16570.

There are circumstances in which the regulations cannot be applied. For example, if an asset is transferred from X to a connected person Y, a valuation is put forward which gives rise to a capital loss and any alternative valuation also gives rise to a capital loss. There may be no gain arising on any other transfer between the same connected persons and so the value will not be a material question in an appeal. If neither X nor Y makes an application under paragraph 9 you will not be able to litigate the valuation dispute.