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Do you use CG34 for 31st March valuations?

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I am dealing with a CGT return for a family member with a 31st March 1982 valuation as cost. There were limited sales in the area around that time and the Chartered Surveyor I asked could not find much information. I am likely to use the Nationwide index calculator as have found a neighbouring house that sold in the early 1990s. Interested in others second opinions - would you do a CG34 check in this case? Many thanks in advance.

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By ireallyshouldknowthisbut
22nd Sep 2021 14:00

This gives various sources for 1982 valuations:

https://www.ricsfirms.com/glossary/1982-market-values-for-residential-an...

including this which is all HMRC are going to use, so you might as well cut out the middle man and a 9 month delay:

https://webarchive.nationalarchives.gov.uk/ukgwa/20141002132829/http:/ww...

I tend to look at a range of stuff and if it comes in about the same point, write to the client say what I have done and 'pick one of 'em'. The good thing about 1982 is that £5k easily covers most high/low ranges which is at most £1,400.

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By David Ex
22nd Sep 2021 14:02
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Scooby
By gainsborough
22nd Sep 2021 16:26

Many thanks both. I have looked at various sources (VOA and Nationwide) and have a range of values but just wanted to know whether other Awebbers use CG34 or not - looks like a no so far :-).

EDIT - I would not have done so in the past but now considering that tax will be payable in the next few weeks but the valuation/21-22 TR could be enquired into up to 2024.

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By Tax Dragon
22nd Sep 2021 16:36

It's easy to think that 30-day reporting renders the CG34 redundant. I'm not so sure. It should still buy you certainty come SA-day.

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Replying to Tax Dragon:
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By Hugo Fair
22nd Sep 2021 19:25

https://www.gov.uk/government/publications/sav-post-transaction-valuatio...
"To ensure you meet the 30-day filing requirement for a Capital Gains Tax UK property return, you may submit an estimated return if you are waiting on a CG34 valuation. When you have the actual valuation figure you can then amend your return." So HMRC are still expecting (hoping?) that you'll use the CG34 option.

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Replying to Hugo Fair:
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By Tax Dragon
22nd Sep 2021 19:49

Yeah I think if I would have used a CG34 (which sometimes I would) then I would still do so.

(I say "think". That's probably disingenuous. My comments here cannot be honestly described as deeply considered!)

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By More unearned luck
22nd Sep 2021 19:57

The tax paid on a CGT return is just an estimate in the same way that PAYE is. Both involve estimates (in this case the 1982 value at least) and in the case of PAYE HMRC estimate, for example, the PA and the value of BIKs. The only difference is the party making the estimate.

You will, of course, never get a valn agreed within the reporting deadline for the CGT return, but there is a good chance that the agreement can be made by the time the SA return is ready to be filed (well before coronavirus that would have been true).

Read SP1/06. A DV agreed valn should be bullet proof against a Veltema type discovery assessment.

I suppose if the estimate in the CGT return is too high on the same scale as Veltema was too low, the client might face a penalty.

Question: Do you have to put the same value in both the CGT comp used for the CGT return and in the comp submitted with the CGT34? In the one place I might want to go low out of an abundance of caution and in the other high to give room for the horse trading.

The best advice is to advise the client to get get a red book valn from a chartered surveyor. The second best advice is to ask the client to ask his estate agent for a figure.

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By penelope pitstop
23rd Sep 2021 15:35

I have in the past used them on a number of occasions (Maybe 15 or so times)
Surprised that HMRC accepted my CG34 "reasonable" estimates on a number of occasions.
In one case I think HMRC put forward a more advantageous valuation to the client, which caught me by surprise.
Even chartered surveyors get it wrong sometimes.
And remember, valuation is not a precise science!

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Scooby
By gainsborough
23rd Sep 2021 17:43

Thanks so much everyone for your replies.
Reassured too by your experience Penelope. The cynic in me worried that HMRC would always try and go lower so it's good to hear that is not always the case.

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