Minerals Valuation – Members of the Hemerdon Mine Association

Minerals Valuation – Members of the Hemerdon Mine Association

Following a long period of dormancy, increasing world tungsten prices created renewed interest in the Hemerdon Wolframite deposit.  Mineral property interests in the site once again rose in value as mining company Wolf Minerals sought to secure an option over this reserve.  Mineral owners wishing to avoid potentially significant Capital Gains or Inheritance Tax liabilities transferred their interests in anticipation of future increases. 

Notwithstanding the considerable uncertainly of the project at date of transfer the District Valuer (Minerals Valuation Agency) took the view that the capital gains had already occurred and sought to impose significant tax liabilities.  The Revenue took little account that the commercial viability of the project had yet to be proven, relying primarily on the existence of an old minerals planning permission and the option agreement to support an enhanced value.

Wardell Armstrong’s mineral valuations on behalf of a number of the mineral owners assisted in limiting the District Valuer’s claim, reducing the tax liability arising from the transfers.