Capital Gains Tax is charged when you sell your property or asset and it has increased in value from the time of its acquisition. You don't usually have to pay Capital Gains Tax when you sell or dispose of your own home due to Private Residence Relief. You may have to pay Capital Gains Tax if you own more than one home or you use your home for business purposes.
If you sell or dispose of a property that does not qualify for Private Residence Relief you must work out the gain or loss.
Often, the Inland Revenue will require a formal written valuation to calculate any Capital Gains Tax due. Any gain in value made on a property is subject to this Tax. (Please note, some exemptions may apply if you buy another property or certain other assets for business use.) In addition, when it is intended to transfer the ownership of a share of a property or the entire property, a value has to be given in order to assess the amount of Stamp Duty to be paid to the Inland Revenue.
The tax arises when you sell or dispose of the property and its value has increased from the time of acquisition. Valuations used by taxpayers in their calculations need checking by the district valuer on behalf of HMRC.