SVM101040 - Introduction: SAV structure and organisation

Shares and Assets Valuation (SAV) is a specialist area of HMRC. 

Requesting valuation advice within HMRC

If you have a query on valuation, please contact SAV directly. 

Customers contacting SAV

There are limited circumstances in which SAV will discuss valuations with customers without a referral from HMRC.  Customers can find guidance on gov.uk at

https://www.gov.uk/guidance/shares-and-assets-valuations-for-tax

SAV is based in Nottingham.  However, paper / physical post should be sent to

Shares and Assets Valuation
HM Revenue and Customs
BX9 1BJ
United Kingdom

Here, letters are scanned and put in an electronic queue for SAV to access. 

If you are using a courier, you will need to use the address shown below:

HM Revenue and Customs
Benton Park View
Newcastle upon Tyne
NE98 1ZZ

SAV also has an external mailbox - savexternal.mailbox@hmrc.gov.uk .

Once a case is allocated to a valuer, the valuer will correspond with the agent/taxpayer by email if the agent/taxpayer wishes to do so and accepts the risk of corresponding by email.

Organisation

SAV is part of Assets, Residence and Valuation and is headed by a Deputy Director. 

There are three valuation groups within SAV each headed by an Assistant Director. 

One of the groups (VG2) divides further into the

  • Litigation and Technical Advice Team (LTAT) and
  • Service Delivery Team (SDT)

VG1 predominantly deals with Intellectual property valuations, Intangibles and valuations for Large Business.

VG3 divides further into a number of smaller teams (each headed by a Grade 7 valuer).  These teams deal with unquoted share valuations, plus various specialisms such as goodwill, chattels, bloodstock, Lloyds Underwriting interests, ships.

Digital Office

Since October 2016, SAV has worked files digitally with the aim of dramatically reducing the number of file movements and storage needs.  Most SAV files are now delivered, managed and stored digitally.  The electronic files mirror the structure in the old paper files.

When valuation requests come in, a digital file for the company is created in the SAV Digital File Repository, unless a digital file for that company already exists.

Each digital company file will have a number of folders including folders for accounts, Companies House documents, legacy information, research, Share Options, ESS shares and Business Property Relief clearance.  There is also a Closed Valuations folder to hold all closed valuations in their subfolders and sub file folders for all current valuation documents and correspondence numbered SF1, SF2 and so on.

If a digital company file already exists and a new valuation request is received in SAV, a new sub file will be created in this digital company file.

The old physical company files kept in store can be recalled whilst SAV still holds these files in storage.  Physical files will be destroyed in accordance with data retention policy, usually after 6 years of last access.

If a paper file is recalled and it contains essential information for current or future valuations, the Service Delivery Team (SDT) will scan relevant documents into the digital company file. 

Stages in the life of a typical SAV case:

  • Case referral
  • Risk Assessment and selecting cases for negotiation
  • Pro-active case-working
  • Cases to be referred to the Litigation & Technical Advice Team (LTAT)

Case referral

SAV undertakes valuations at the request of whichever HMRC Business Area owns the case – for example CG RIS, Counter Avoidance, CT RIS, Fraud Investigation Section, ISBC, LB, Mid sized Business, WMBC Assets, WMBC Wealthy and so on.  The SAV valuer is the expert on valuation issues, but the ultimate responsibility for the handling of the case remains with the case-owner.  The valuer and the case-owner should work together at every stage of the case.

SAV operate a two tier Risk Assessment process:

1st Tier Risk Assessment

This is the first opportunity for Risk assessors to:

  • Accept a value returned without question
  • Suggest an alternative informal valuation to the case-owner
  • Explain to the case-owner why SAV is unable to consider the value returned, for example, due to a lack of information
  • Recommend to the case-owner whether an enquiry should be opened to enable SAV to acquire missing information and pursue the valuation
  • Refer cases not considered appropriate for 1st Tier Risk Assessment for 2nd Tier Risk Assessment

2nd Tier Risk Assessment

Cases that are not appropriate for 1st Tier Risk Assessment, for example due to complexity, are allocated to valuers for further investigation.  Having given the case full consideration the valuer may at this stage:

  • Accept a value returned without question
  • Suggest an alternative informal valuation to the case-owner
  • Explain to the case-owner why SAV is unable to consider the value returned, for example, due to a lack of information
  • Recommend to the case-owner whether an enquiry should be opened to enable SAV to acquire missing information and pursue the valuation
  • If an enquiry is already open, agree with the case-owner that SAV will contact the taxpayer/agent and commence investigation of the valuation

Pro active caseworking

Once a valuation has passed through the Risk Assessment process and requires further investigation, it will be worked by a valuer.

See flowcharts SVM120090 and SVM120100 in the SVM manual showing the pro-active approach expected of valuers.

Litigation and Technical Advice Team (LTAT)

Once a case has been open for 18 months it should be reviewed by a Grade 7 manager (and Grade 6 if necessary) to consider referring the case to LTAT.

If, before a case reaches the 18 months stage, the taxpayer/agent indicates that they may wish to take the case to a Tribunal, the case should be referred immediately to the LTAT.

A full list of the circumstances where a referral to the LTAT is required are set out in Chapter 117 of the SVM manual. 

The LTAT offer informal advice on cases and also take forward all cases which go to a contentious hearing.

Service Delivery Team (SDT)

The SDT are the first port of call for Enterprise Management Incentive  valuations.  They also provide general support to valuers, set up electronic files, allocate valuation requests as well as dealing with budgets, SAV stats and guidance amongst other tasks.

Additional Guidance: SVM150000