Post transactions checks are used in relation to capital gains, they can be used by individuals or companies.
Its a free service offered by HMRC.
HMRC state
If we agree your valuations we’ll not question your use of those valuations in your return, unless there are any important facts affecting the valuations that you’ve not told us about.
But HMRC say it could take at least 3 months to check the valuation.
You can only request a Post Transaction Valuation Check:
- after disposals relevant to Capital Gains Tax
- before the date you must file your Self Assessment tax return
Here is a link to the form
CG34 Post-transaction valuation checks for capital gains (publishing.service.gov.uk)
Why are they needed?
There are situation where transactions are not ‘arms length’ in other words they are between connected parties.
For example if you have a development company and sell property to related company.
You can use the CG34 for
- Shares
- Goodwill
- Land
- Other Assets
The CG34 is not mandatory, you don’t have to get a post valuation check, but if you do, you will gain protection against HMRC questioning your valuation (assuming they agree with you CG34 submission).
You will need to submit supporting documents for example a independent valuation report to justify the value.
For Land valuations you will also need
- Copy leases
- Tenancy Agreements
- Plans of undeveloped land
Where do you send the form?
Taxpayers dealt with by HMRC’s High Net Worth Units, or Public Department 1 should send the completed CG34 to those offices.
Those dealt with by Specialist Trust Offices should send their forms to:
Specialist PT Trusts and Estates Trusts
SO842
Ferrers House
Castle Meadow
Nottingham
NG2 1BB
Other individuals, partnerships and personal representatives should send the completed form direct to:
PAYE and Self Assessment
HM Revenue and Customs
BX9 1AS
Companies should send to the office dealing with the company corporation tax affairs or if they do not have one, to:
Corporation Tax Services
HM Revenue and Customs
BX9 1AX
