CIRD45025 | Intangible assets: related party rules: valuation rules: overview

Related party valuation rule

Related party transactions could be subject to a valuation adjustment for tax depending on the circumstances. These rules ensure that related parties cannot gain a tax advantage by using an inflated or deflated value.

There have been a number of changes to CTA09/PART8’s valuation rules and knowing which rules to apply will depend on the date and type of transaction. Before deciding which rules to apply, a full transactional analysis should be undertaken. For example, it is important for you to know whether you are dealing with a transfer, the grant of a licence or the novation of existing contracts.

The following will direct you to the relevant guidance depending on the date and type of transaction.

• For transfers where the transfer pricing rules would not apply, see the basic market value rule at CIRD45030.

• For transfers occurring before 8 July 2015 or on or after 1 January 2026 where the transfer pricing rules could apply see CIRD45038 and CIRD45040.

• For transfers occurring between 8 July 2015 and 31 December 2025 where the transfer pricing rules could apply see CIRD48330.

• For realisations involving non-monetary consideration occurring on or after 8 July 2015 see CIRD48340.

• For the grant of a licence of other right occurring on or after 1 January 2026 see CIRD45050.

• For the grant of a licence of other right occurring before 31 December 2025 see CIRD48350 onwards.