CG74300 - Valuation Office Agency procedures
Source: gov.uk (2025-10-03)


1. Introduction

This guidance covers the process for making a referral to the Valuation Office Agency.

In particular, it explains when, ‘not negotiated’, and, ‘negotiated’ valuations should be obtained.

It set outs when and how form CG20 should be completed.

The guidance also confirms the expected timescales and format of responses from the Valuation Office Agency.

2. Overview

If you need advice from the Valuation Office Agency for Capital Gains Tax or for Corporation Tax on chargeable gains in relation to:-
- any valuation of land in the United Kingdom
- any apportionment of consideration to land in the United Kingdom
you should send a form CG20 to the Valuation Office Agency appropriate for the location of the property, as detailed on the intranet page entitled, ‘Contacting the Valuation Office Agency’.

See however CG74000 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74000), Section 4 where the land is in Northern Ireland and CG75800 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg75800) for land outside the UK. A copy of the form should be retained with your papers.

In more complex cases a covering memo should be sent with form CG20 explaining why the land valuation is needed.

Form CG20 can be obtained using Forms and Letters in SEES.

Advice on completing form CG20 is given below.

‘Not negotiated’ and negotiated valuations

The circumstances in which you should ask for a ‘not negotiated’ valuation are explained at Section 5 below while the circumstances in which you should ask for a negotiated valuation are explained at Section 7 below.

Unagreed valuations

If the Valuation Office Agency is unable to reach an agreement with the customer about any land valuation or apportionment they will report to you a valuation or apportionment which is unagreed. The procedures for dealing with that unagreed valuation are at CG74500 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74500).

3. When to use form CG20

Form CG20 should only be used to obtain for the purposes of Capital Gains Tax or Corporation Tax on chargeable gains:-
- a valuation of land in the United Kingdom, or
- an apportionment of any consideration given for assets which include land in the United Kingdom.
You should use one form CG20 for each property or block of properties except where a number of separate properties are disposed of in one transaction. If you use a CG20 for a number of properties you should:-
- attach a schedule of the properties involved, and
- send it to the Valuation Office Agency appropriate to the area in which the highest returned value property is located. For the appropriate Valuation Office Agency office see the intranet page entitled, ‘Contacting the Valuation Office Agency’
If the number of valuations makes the case suitable for the Land Portfolio Valuation Unit, follow the guidance at CG74050 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74050).

The Valuation Office Agency will arrange for any work that needs to be done if the valuations need to be co-ordinated between different Valuation Office Agency offices.

Form CG20 is not to be used for the following valuations:-
- employment income valuations, see CG16270 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg16270) and EIM08001 (https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim08001) onwards
- capital allowance valuations, see CA12300 (https://www.gov.uk/hmrc-internal-manuals/capital-allowances-manual/ca12300) onwards
- land and buildings held as trading stock where a valuation is required to determine trading profits or losses, see BIM51500 (https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim51500) onwards
- assets other than land and buildings
- unquoted shares
- valuations which fall within CG74050 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74050) (including requests for multiple properties or portfolios)
- the valuation of the retained interest for a part disposal where the practice in CG71850 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg71850) applies, as in such cases no such valuation is required.
- valuation in respect of any tax other than Capital Gains Tax or Corporation Tax on chargeable gains
- for pre-enquiry requests for ‘risk valuations’ where informal liaison arrangements are in place between your business area and the Valuation Office Agency.
- for requests for a negotiated valuation where the Valuation Office Agency has previously been asked to give an opinion on a ‘not negotiated’ basis; see Section 7 below.
4. Pre-enquiry ‘risk valuations’

Valuation Office Agency support selection strategies by providing a fast informal valuation service at the risk assessment stage.

Requests for pre-enquiry CG valuations of land should be made by memo or standard stencil, clearly identifying the valuation requirement. It is often helpful to supplement the request with a copy of the CG pages and the computation.

Completion of a CG20 is not necessary in these pre-enquiry requests.

Transmission of pre-enquiry valuation requests by RIS should be made by email to the DVS (VOA), see the Contacting the Valuation Office Agency SharePoint page, for all properties in England, Wales and Scotland - as outlined in Referral of requests to Valuation Office Agency.

Large Business and WMBC have their own protocol to refer requests via the Land Portfolio Valuation Unit.

Where there are multiple properties see CG74050 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74050).

Valuation Office Agency will interrogate their information sources and offer an informal opinion on value and any guidance. A decision to take the case up for formal enquiry can be deferred, subject to time limits, until the informal advice is received. A named valuer in Valuation Office Agency will be appointed to the case from the outset.

Valuation Office Agency can also provide general advice and assistance on areas of risk in relation to land and property, including assistance at the mapping stage. In addition to being able to extract information about property transactions from their COVO database, which may help with developing risk profiles, they can also undertake informal or formal valuations of individual properties where significant amounts of tax may be at stake. There is a named liaison contact for each region who RIS can approach to discuss their particular requirements.

5. Completion of form CG20

Form CG20 can be found in SEES.

Advice on the information to include on the form CG20 and which documents to attach is given below (the SEES reference is given after each subtitle). You should also refer to form CG20 notes.

Where documents are attached to the CG20 you should always attach copies, not originals. The Valuation Office Agency will not return the attachments. Exceptionally, if original documents have to be attached, this should be made clear on the form and in a separate memo, and the return requested where appropriate.

To decide whether you need a ‘not negotiated’ or a negotiated valuation you should refer to Sections 5 and 7 below.

Description of property to be valued (7a)

It is important that you provide a full description of the property to be valued. Without it the Valuation Office Agency will be unable to precisely identify what has to be valued and will not be able to provide you with a proper valuation.

It is the description of the property at the date of valuation that is required in this section and not the description of the property at the date of disposal, which may be different.

If there has been a significant change you should provide details on the form or in a separate memo if required.

Buildings

If the valuation is of the whole of a building and all its associated land the full address of the property will normally be sufficient.

Flats

If the valuation is of a single flat in a block of flats you should give the number of the flat as part of the address, for example, flat 3. You should also describe where the flat is located, for example, basement or first floor.

Office suites

If the valuation is of part of an office block you should give the ‘suite’ number as part of the address, for example, suite 4. You should also describe the suite, for example, 1,000 square feet on the third floor.

Shops

You should take particular care with shops; are the upper floors included?

Land

You should also take particular care with undeveloped land. You will usually need a plan of such land and you should obtain it from the customer or from the customer’s agent, see 7d below. You should also provide a description, for example, a 2,000 acre farm including farmhouse, all farm buildings and four cottages in two parcels as shown on the plan attached.

Description of property disposed of (7b)

Part disposal

Where the disposal is a part disposal you must describe the asset BEFORE the part disposal, and also the part disposed of and the part retained.

If the whole of the property to be valued has been disposed of you should enter ‘whole’ on the CG20.

For example, if the customer sells a single flat out of a block he owns identify which flat has been sold, for example, flat 2.

Similarly, with land, if 3 acres are sold out of a holding of 10 acres the Valuation Office Agency will need to know precisely which 3 acres have been sold. A plan should be provided, see 7d below.

Leases

Where a lease is granted out of a freehold or a superior leasehold this represents a part disposal, see CG70800 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg70800).

In the circumstances a description of the property disposed of would be, for example, a 25-year lease granted out of a freehold interest in the whole property.

Description of taxpayer’s interest (7c)

It is the customer’s interest in the property at the date of valuation that is required in this section and not the interest held at the date of disposal, which may be different.

Interests in land may be either freehold or leasehold, but out of these interests may be carved many subsidiary interests which may affect the valuation of the property.

Leasehold

If the interest to be valued is a leasehold you should provide details of the lease, namely:-
- date of commencement
- duration
- rent at valuation date
- dates of rent review
- liability for outgoings including repairs
- any restrictive covenants.
All of these items may affect the valuation. An example would be:-

Full details at each valuation date should be given in the box headed ‘description of taxpayer’s interest’ and brief details should be given in the box headed ‘valuations required’.

If necessary an accompanying report should be supplied. A copy of the lease should be provided if it is available.

Undivided shares

You should also consider whether the Valuation Office Agency should be asked to value the entirety of the land or an undivided share in the land. Where the customer’s interest is an undivided share, please see CG74200 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74200).

Other factors

Include details of any other matters affecting the property which might have a bearing on the valuation, such as rights of way over the property, restrictive covenants, licences etc.

More than one interested person

Other customers may be affected by the valuation, for example the co-owners of an asset where the share held by each needs to be valued at a particular date. It is important that valuations of all interests in land who could be affected by the valuation are considered together.

When the request for one or more valuations is required on an undivided share basis, see CG74200 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74200), this should be clearly indicated on form CG20 together with the percentage share or shares to be valued clearly specified. If more than one customer is affected by the valuation a memo should be attached to include relevant details of the other holders of undivided shares which need to be valued. In negotiation cases the memo should make clear the contact details of all the customers with whom the Valuation Office Agency is to negotiate.

In such a case separate forms CG20 in respect of the valuation of each share are required for each customer.

Where you require a formal agreement under the 1967 Capital Gains Tax Regulations, see CG16400P (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg16400p), please advise the Valuation Office Agency in a separate memo with full details including the names and addresses of all the persons whose liability may be affected by the valuation.

Plan of property (7d)

The Valuation Office Agency will need to be able to identify precisely the asset to be valued in order to provide a valuation. Where there is any doubt about the location or extent of the property and in particular where it is a question of valuing undeveloped land a plan identifying the asset will be essential.

Leasehold (7e)

You should indicate if the customer’s interest in the land is a leasehold interest. If so, you should provide the details required above in 7a and provide brief details in 7f.

Valuations required (7f)

The date at which each valuation is required must be stated in this section.

The customer’s interest is the interest in the property at the date of valuation and not at some other date, for example, the date of disposal (if different).

You should specify whether the interest to be valued is the entirety or an undivided share. If an undivided share state the appropriate fraction.

For example, if the property is sold freehold unencumbered by a lease, and you require a 31 March 1982 valuation and at that date the freehold interest was subject to a lease the interest to be valued at 31 March 1982 will be ‘freehold subject to a lease’.

The customer’s valuation is to be stated even if you are enclosing the capital gains computation containing that valuation.

Apportionment (7g)

If you require advice on the correct apportionment of consideration between various assets or between the exempt and non-exempt parts of a single asset, complete this section identifying the individual asset or parts, the consideration to be apportioned and the customer’s suggested apportionments.

Other information available (8)

Information on the potential tax consequences and nature of your request of the valuation is very helpful to the Valuation Office Agency in their initial review and prioritisation so that the Valuation Office Agency’s limited resources can be best deployed.

Where you have sufficient information you should provide details of the potential tax relevance of any change in the customer’s valuation using the three boxes for guidance on the CG20 Form.

In directing requests you may consider whether any adjustment will be tax material (now or in the foreseeable future) or is limited by reliefs, losses or other factors.

There may be occasions where it is clear from the computation that the value will only result in an adjustment to the gain or loss position if it exceeds a different sum to that submitted due to restrictions arising from indexation or other factors and here it may be helpful (using box B) to inform the Valuation Office Agency that you are only concerned if the value is above or below that estimated level beyond which there is no effect on the tax liability.

Where you are requesting a ‘not negotiated’ valuation and you only require broad advice to inform risks, you should make this clear using box C.

Your comments might include matters such as:-
- the valuation range where any change will have no effect on the tax liability
- the increased tax which will be payable if the valuation were to change, calculated in broad steps, for example each £10,000, as appropriate to the particular case
- the size of any losses available together or part of any potential increase in the capital gain (and whether reliefs are available).
Where you already have received informal valuation advice from Valuation Office Agency and negotiations are needed, it would be helpful to indicate the potential tax relevance if the valuation were to change to the reported sum.

The remainder of this section of the CG20 should be completed so far as the information is available from the records held.

You should provide:-
- the date of acquisition and the cost to the customer
- the gross sale proceeds and the date of sale. If there have been earlier part disposals of the asset you should supply full details to the Valuation Office Agency wherever possible.
- details of any improvement expenditure where known and the dates on which the expenditure was incurred.
- if the property was let at the valuation dates full details of the lease or tenancy as described above.
- any documents which may have a bearing on the valuation should be supplied.
- the name and address of the person acquiring the property, if known.
- a copy of the customer’s computation.
6. Not negotiated valuation

You should ask for a ‘not negotiated’ valuation if:-
- it is a first reference request to the Valuation Office Agency (an exception to this is in unusually complex valuations and it is clear that discussion between the Valuation Office Agency and the customer is necessary and/or specifically requested by the customer)
- you are asked for a post transaction valuation check; see CG74050 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74050), Section 4.
- a ‘not negotiated’ valuation has already been provided by the Valuation Office Agency for pre-enquiry risk purposes; it is based on limited information; the figure has not been disclosed to the customer and more information has now been provided or can be obtained following the opening of an enquiry.
You should not use from CG20 to request a ‘not negotiated’ valuation for pre-enquiry requests for ‘risk valuations’ where informal liaison arrangements are in place between your business area and the Valuation Office Agency (see above).

The Valuation Office Agency will normally provide you with a ‘not negotiated’ valuation within the period set out below. If the time limit for opening an enquiry or making an assessment is likely to expire before the valuation is received you should:-
- send a covering note with the CG20
- explain the position
- ask urgently for a ‘not negotiated’ valuation.
If time is very short you should telephone the Valuation Office Agency.

The valuation provided in these circumstances is often termed a ‘best of judgement’ valuation.

Expected period for response

The Valuation Office Agency will:-
- carry out an initial appraisal and where the customer’s returned valuation can be readily accepted at this stage without detailed research, aim to report to you within an average of 5 working days of receipt by the Valuation Office Agency
- within 10 working days of receiving the form CG20 let you have an acknowledgement and advise you of the case reference and Valuation Office Agency contact details
- aim to provide you with a ‘not negotiated’ valuation on form VO1171 within an average period of 20 working days
- provide you with an update if the case is still outstanding after 30 working days and thereafter at 20-day intervals.
If the Valuation Office Agency considers that the ‘not negotiated’ procedure is inappropriate, for example, because of the complexity of the valuation, they will advise you accordingly and reclassify the case as a negotiated valuation.

The ‘not negotiated’ valuation is prepared on the basis of the information available to the Valuation Office Agency without contacting the customer. Where information is lacking the Valuation Office Agency will make such assumptions as seem reasonable and unlikely to give rise to substantial error in valuation. If the customer’s valuation falls within acceptable tolerances it will be accepted by the Valuation Office Agency. If not, you will receive an alternative valuation.

7. Valuation Office Agency report (not-negotiated)

Returned valuation accepted

If the customer’s valuation is acceptable to the Valuation Office Agency they will report to you agreeing the value ‘as returned’. If this is a post-transaction valuation check you should inform the customer of the agreement without delay.

In such a case any comments included with the valuation report that the valuation is based on limited information should not be passed to the customer as the post-transaction valuation check process is designed to give the customer a certainty over the valuation.

Returned valuation not accepted

On receipt of a ‘not negotiated’ valuation where the customer’s valuation is not acceptable to the Valuation Office Agency you should compute the chargeable gain and write to the customer enclosing a copy of the computation based on the Valuation Office Agency’s valuation.

You should say that the valuation has been made on the basis of the information presently available to the Valuation Office Agency and pass on any specific assumptions drawn to your attention by Valuation Office Agency. You should advise that you would be prepared to agree the chargeable gain on the basis of the valuation reported by the Valuation Office Agency.

You should invite agreement to the computation.

If agreement is obtained you can settle any open enquiry or appeal accordingly.

8. Negotiated valuation

You should ask for a negotiated valuation:-
- following receipt of a ‘not negotiated’ valuation where that valuation is not accepted by the customer, or
- where the valuation is unusually complex and it is clear that discussion between the Valuation Office Agency and the customer is necessary and/or specifically requested by the customer.
If the Valuation Office Agency has previously been asked to give an opinion on a ‘not negotiated’ basis in relation to a valuation request using form CG20 you should not use a form CG20 again in requesting a negotiated valuation. Your request for a negotiated valuation should be made by memo.

If the Valuation Office Agency has not previously considered the returned valuation you should use a form CG20.

Expected period for response

The Valuation Office Agency aim to report ‘negotiated’ valuation cases within an average time period of 100 working days of receiving your request. Within that time you should usually receive either an agreed valuation or an unagreed valuation if agreement cannot be reached.

The Valuation Office Agency is responsible for keeping the customer informed. The Valuation Office Agency will make contact with the customer within 20 working days of receipt of a request for an agreed valuation wherever possible. The customer will also be kept informed if there is a 20 working day delay in responding to a communication.

If the Valuation Office Agency needs further information from the customer which is important in enabling a valuation to be carried out, but is unable to obtain that information from the customer, they will contact you and ask you to obtain the information from the customer, using your formal information powers where necessary.

9. Valuation Office Agency report (negotiated)

If the Valuation Office Agency is able to reach agreement with the customer that agreement will be reported to you on form V1171. The agreed valuation should be used in settling the open enquiry.

If the Valuation Office Agency is unable to reach agreement a valuation will be reported to you which is unagreed. On receipt of that valuation you should take the actions set out at CG74500 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg74500). In particular, you should note that in these circumstances you must seek approval from CG Technical before closing your enquiry.