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DH 11: Denied amounts: treatment upon disposal of disallowed residential property
or “How previously denied costs are handled when you sell a disallowed residential property”
You could also call this:

“How to value land and other property for tax purposes”

When you need to value land for this part of the law, you have a couple of options. If the land isn’t described in [section DH 4(2) and (3)], you can use the most recent value set by your local council. This could be the capital value or the annual value. But if you bought the land after the council’s last valuation, you should use what you paid for it. If you got the land from someone you’re connected to, like a family member or business partner, you should use its market value instead.

For other types of property that aren’t covered by the land valuation rules, you have two choices. You can use the property’s tax book value, which is the value used for tax purposes. Or, if you keep financial accounts that follow proper accounting rules, you can use the value shown in those accounts.

These rules help make sure everyone is using fair and consistent values when they’re working out their taxes under this part of the law.

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Part D Deductions
Interest incurred in relation to certain land

DH 12Valuation

  1. For the purposes of this subpart, a person’s land, excluding land described in section DH 4(2) and (3), is—

  2. valued at its most recent capital value or annual value set by a local authority; or
    1. if the land was acquired after the most recent local authority valuation, it is valued at its acquisition cost or, in the case of an associated person acquisition, its market value.

      1. For the purposes of this subpart, to the extent to which subsection (1) does not apply for a person’s property, the property is—

      2. valued using its tax book value; or
        1. if the person prepares financial accounts according to relevant accounting standards or legislative standards, valued using the financial accounts’ valuation.

          Notes
          • Section DH 12: inserted (with effect on 27 March 2021), on , by section 75 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
          • Section DH 12(2) heading: replaced (with effect on 27 March 2021), on , by section 47 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).