Capital Gains Tax Property Valuations in Staffordshire & the Midlands

When Do You Need a Capital Gains Tax Valuation?

You are likely to need a RICS CGT valuation in the following situations:

1. Selling a second home or buy-to-let property If you sell a residential property that is not your main home, a rental property, a holiday let or a property you own but do not live in, any gain is potentially subject to CGT. A formal valuation establishes the base cost and current market value required for your tax calculation.
2. Selling an inherited property When you inherit a property and later sell it, CGT is calculated on the gain between the probate value (the value at date of death) and the sale price. If the probate valuation was not carried out carefully, or if you are selling some time after inheriting, a formal retrospective or current valuation is needed.
3. Transferring property between related parties If you transfer a property to a spouse, civil partner, child or family trust, HMRC treats the transfer as taking place at market value for CGT purposes, even if no money changes hands. A formal valuation is required.
4. Selling commercial property or business assets The disposal of commercial property, mixed-use premises or land is subject to CGT in most cases. The calculation of the gain requires an accurate professional valuation at the relevant dates.
5. Disposing of development land or property with planning permission Where land or property has increased significantly in value due to development potential, the CGT calculation can be complex. We can provide valuations both before and after the grant of planning permission where relevant.
6. Non-UK residents selling UK property Non-UK residents who sell UK residential property are subject to Non-Resident CGT (NRCGT). The CGT is calculated from 6 April 2015 (the rebasing date for NRCGT), so a retrospective valuation as at April 2015 is often required.

The Capital Gains Tax Valuation Process

1. Contact us: with details of the property, its location, the relevant date(s) for valuation, and the purpose of the valuation
2. Inspection: we inspect the property (or carry out a desktop assessment for retrospective valuations where a physical inspection is not possible)
3. Research: we research comparable sales evidence at the relevant date(s) and local market conditions
4. Report: we prepare a formal RICS Red Book-compliant valuation report, addressed to you and suitable for submission to HMRC
5. Support: if HMRC or the VOA challenges the valuation, we can provide further support and, if necessary, negotiate on your behalf

Why Use a RICS Valuer for Your Capital Gains Tax Valuation?

HMRC expects CGT valuations to be carried out by a suitably qualified professional. A RICS Registered Valuer provides:

• An independent, objective opinion of value with no conflict of interest
• A valuation prepared under the RICS Red Book, the internationally recognised standard for professional property valuation
• A formal written report that is clearly reasoned and supported by comparable evidence
• A valuation that is defensible if challenged by HMRC or the Valuation Office Agency

An inaccurate or unsupported valuation can result in HMRC substituting their own higher figure, increasing your tax liability. Getting the valuation right at the outset is far less costly than a disputed assessment.