Is a CG34 Form Required When Selling Property in the UK?
- TBA
- Feb 19
- 3 min read
Updated: Feb 25
With mortgage interest rates in the UK gradually declining, a wave of buyers is returning to the market, signalling a slow recovery in the UK property sector. Experts predict that 2025 could be the ideal time for property owners to sell.
According to current tax laws, any profits earned from property sales are subject to Capital Gains Tax (CGT) in the UK.
During the CGT declaration process, you may need to submit a CG34 form to HMRC. Many people are curious about this form: What is it? Is it mandatory? What happens if sellers choose not to submit it?
What is the CG34 Form?
When you sell an asset or property, you are required to report the transaction and pay CGT to HMRC.
Typically, you must declare your gains within 60 days of the sale and pay the tax via the annual Self-Assessment system. However, what should you do if:
The sale wasn’t at market value?
The asset valuation is complex?
You're unsure about the taxable amount?
In such cases, HMRC offers a free service called the Post-Transaction Valuation Check (PTVC), which requires submitting a CG34 form.
This process allows HMRC to review the valuation of the property at the time of transfer, ensuring the stated value is acceptable.
Although using the PTVC service is optional, it’s highly recommended if you want to avoid future disputes with HMRC, such as challenges to your valuation that could result in appeals or additional professional fees.
The CG34 form also helps prevent errors that might lead to penalties due to inaccurate declarations.
Who Should Apply?
The PTVC service applies to various assets, including:
Land and property
Shares
Intangible assets like goodwill
Tangible assets such as artwork
If you're uncertain whether HMRC will accept your valuation, submitting a CG34 form is advisable.
For example:
Selling Commercial Real Estate: If you sell a commercial property at a price agreed privately between the buyer and seller (not at market value), the CG34 form can confirm whether the valuation is acceptable for tax purposes.
Transferring Private Company Shares: Since private company shares often lack a clear market valuation, submitting a CG34 form ensures your declared valuation aligns with HMRC's expectations.
Applying for a Valuation Check
1. Complete the CG34 Form
To initiate a valuation check, complete the CG34 form with detailed information about the asset and any supporting calculations or documents. For example, if selling property, include:
Property type
Address
Ownership details
Development plans
Other valuation-relevant documents
2. Submission Timing
HMRC typically requires three months to review a valuation report.
Therefore, it’s recommended to submit the CG34 form at least three months before your Self-Assessment deadline. This allows sufficient time for negotiations or adjustments if needed.
3. Outcome of the Valuation Check
After reviewing the submitted information, HMRC may:
Agree with your proposed valuation
Suggest an alternative valuation
Request additional information
If both parties agree on a valuation, you can proceed with your Self-Assessment confidently. HMRC won’t challenge the valuation in the future unless undisclosed facts emerge.
If an agreement isn’t reached, discussions with HMRC and professional valuers may continue beyond the tax filing deadline.
Completing the CG34 Form
The CG34 form comprises several sections:
Part 1: Taxpayer Information
Provide personal details such as name, address, National Insurance Number, and Unique Taxpayer Reference (UTR).
Part 2: Asset Details
Include comprehensive information about the asset:
Asset Description: Detailed information about the asset and its features.
Acquisition Date: Date you acquired the asset, critical for calculating CGT.
Disposal Date: Date the asset was sold, used to determine the holding period.
Acquisition Cost: Total cost, including related fees or taxes.
Disposal Proceeds: Amount received from the sale.
Part 3: Proposed Valuation
Declare your suggested asset valuation, supported by evidence:
Proposed Valuation: The value you believe is accurate.
Justification: The basis for your valuation, citing factors such as market conditions or professional assessments.
Part 4: Supporting Evidence
Attach documents that support your valuation, such as:
Professional valuation reports
Comparable sales data
Planning permissions or structural surveys
Part 5: Declaration
Sign and date the form to confirm the accuracy and completeness of the information provided.
Some Advice from TB Accountants
CGT can be complex, especially when dealing with high-value or unique assets. Filling out a CG34 form can be challenging without expertise.
Consider consulting a tax professional to:
Ensure accurate and complete information submission
Identify potential tax relief opportunities
Plan a reasonable tax bill
