ABSTRACT
The statutory basis of valuation for stamp duty land tax (SDLT) is significantly different from that which might be adopted in the market place to ascertain value or consideration in a transaction. Therefore, when subject to Her Majesty's Revenue and Customs (HMRC) investigation, challenge or enquiry, taxpayers may find that the approach to valuation adopted provides a different answer from the one used in the particular transaction. However, in larger and more complex transactions, a significant level of difference may be apparent because of the approach adopted by the Valuation Office Agency (VOA) and HMRC. The basis is actually derived from the two primary direct taxes that require property valuations, capital gains tax (CGT) and inheritance tax (IHT), with the CGT definition adopted for SDLT purposes. The Finance Act 2002 (FA 2002) introduced a new code for the taxation of intellectual property, goodwill and other intangibles for property.
