CG16470 - Valuation: more than one interested person: joined in an appeal

When you receive an appeal against

  • an assessment to Capital Gains Tax, or
  • an assessment to Corporation Tax on chargeable gains, or
  • a decision on a claim relating to chargeable gains

and more than one person has a right to be joined as a party to that appeal under the regulations you should write at once to each of those persons to tell them of

  • the appeal
  • the market value or apportionment in which that person is interested and which has been used in making the assessment or in determining the claim
  • their rights under paragraph 8.

If a person to whom you have written does not wish to take an active part in determining the valuation or apportionment which is under dispute they will nevertheless be bound by the outcome. This will be so whether the appeal is determined by the Tribunal or by agreement.

Regulation 8(2)

Regulation 8(2) states that any application to be joined as a party to an appeal should be made in writing to an officer of the Board stating

  • the name and address of the applicant
  • the question which may affect his or her liability to Capital Gains Tax or to Corporation Tax on chargeable gains
  • how his or her liability may be affected
  • his or her contention with regard to that question.

You should send a copy of the application to the appellant and any other interested parties.

If you receive an application under regulation 8(2) before the appeal has been notified to the Tribunal you should

  • satisfy yourself that the application is valid

  • if you are satisfied that the application is valid you should write to the applicant

  • telling him or her that they are joined as a third party to the appeal

  • giving the names and addresses of other third parties who have already been joined.

  • you should also send a copy of that letter to the appellant and to any other party to the appeal.

If the application to be joined as a party to the appeal

  • is received after the appeal has been notified to the Tribunal, or
  • you are not satisfied that it is proper to join the applicant as a party in the appeal.

you should refer the application to the Tribunal to consider under regulation 8(5). The Tribunal have discretion to allow or to refuse the application to be joined.

Where negotiations are carried out on your behalf by, for example, the Valuation Office Agency or Shares and Assets Valuation that office should obtain the necessary agreement from the interested parties.

IF THE TRIBUNAL REFER A CASE TO THE LANDS TRIBUNAL OR THE LANDS TRIBUNAL FOR SCOTLAND YOU SHOULD MAKE AN IMMEDIATE REPORT TO CAPITAL GAINS TECHNICAL GROUP IN ACCORDANCE WITH CG74530.

Withdrawal

If an appeal is withdrawn and you do not give notice within the time specified under TMA70/S54 (4)(b) that you are unwilling for the appeal to be treated as withdrawn the assessment or decision on a claim is treated as upheld without variation. So if you fail to object to the withdrawal of an appeal in appropriate circumstances you may find that the valuation in the assessment or in determining the claim is to be applied for each of the interested persons.

In such cases you should object to the withdrawal of the appeal unless

  • all of the interested parties have been joined as parties to the appeal by a notice under CG16470 and
  • the valuations or apportionments used in preparing the assessment or in making the decision on the claim are appropriate and are consistent with any agreement reached with any of the parties.

TMA70/S46D (1)

Under TMA70/S46D, any question arising in relation to

  • the taxation of chargeable gains (whether under Capital Gains Tax or Corporation Tax), or
  • a claim under TCGA92,

is to be determined by the relevant Lands Tribunal where it involves the value of any land or of a lease of land in the United Kingdom.

Where you are notified by the Valuation Office Agency that a land valuation cannot be agreed, see CG74500+.