CG74150 - Land: valuation: apportionments: advice from the Valuation Office Agency

  1. Obtaining advice from Valuation Office Agency

Where you need to apportion the total consideration given or received on the acquisition or disposal of more than one asset and one of the assets is land in the United Kingdom you may be able to agree the apportionment without reference to the Valuation Office Agency. This may be appropriate where all of the assets are equally chargeable, so that a different apportionment will have little or no effect on the tax chargeable.

Otherwise it will normally be appropriate to obtain the Valuation Office Agency’s advice. For example, this will usually be so where:-

  • one or more of the assets is covered by a relief or exempt from Capital Gains Tax or Corporation Tax on chargeable gains, and

  • the consideration apportioned to any relieved or exempt asset appears excessive.

  1. Nature of advice

The Valuation Office Agency can provide advice on two matters:-

  • the apportionment of any consideration where one or more of the assets is an interest in land in the United Kingdom, and

  • the appropriate method of apportionment between the various assets.

If agreement cannot be reached about an apportionment of any consideration between different assets that include land it may be necessary to refer the dispute to the Lands Tribunal; see CG74500.

TCGA92/S52 (4) requires that any necessary apportionment is to be ‘just and reasonable’; see CG14771. Where land is involved, any judgement about what is ‘just and reasonable’ must take into consideration the value of that land, therefore the Lands Tribunal has authority to consider any land valuations within its jurisdiction needed to come to a judgement about an apportionment. You should follow the guidance at CG74500.

  1. Northern Ireland

If the land in question is located in Northern Ireland then you should make any referral to Land & Property Services Northern Ireland as per CG74000, Section 4.