Capital Gains Tax Valuation Surveyors in London & Surrey

Property valuations for Capital Gains Tax purposes refers to calculating the tax payable when a property is sold at a profit, these are known as “gains” on a property and are liable to taxation.

Capital Gains Taxation arises on property sales , where the asset to be sold is not your primary residence.

The tax (CGT) is calculated on the gain you make on the property sale, during the period of ownership, not the total amount of money you receive. A property valuation provides an unbiased valuation of the property, to ensure an accurate calculation for capital gains tax.

For example, if you own a second property, whereby it is sold at a profit from the original purchase price, then potentially you could be liable to pay Capital Gains Tax, net of any annual exemptions.

A CGT valuation is advised when a property is sold, which may include the following:

• Investment buy-to-let premises
• Business premises
• Land sales
• Holiday homes
• Property purchased before April 1982 (1982 valuations)

Capital Gains Tax (CGT) is payable on the gift of a property, the taxable amount is usually the net difference between the initial price paid and the value as at the date gifted.

The reason to have the asset valued prior to gifting, is to objectively assess the value of the asset with view to mitigation of tax.

For any property purchased before April 1982, obtaining a valuation from an RICS Registered Valuer could save you a considerable amount of money at the point of sale. Capital Gains Tax is usually calculated by deducting the price assumed to be ascribed to the property as at 1982, then assessed against the sale value, so as to assess the Gain and the taxation that flows form that Gain.

The purpose of obtaining a Red Book Valuation, pursuant to a 1982, is to assist in assessing objectively the value of the property as at 1982, taking account of repairs, works, extensions alterations and market adjustments, so as to mitigate the Gain and to potentially reduce the client’s taxation exposure.

For those selling properties which were purchased before April 1982, it is possible to use a Red Book Valuation to deduce the assumed value as at April 1982, so as to mitigate potential Gains arriving from a sale scenario.

Tax required to be paid: This particular service saves our clients considerable sums of money. Our reports provide the evidence required to potentially reduce taxation contributions.

While HMRC does not always insist on a formal report, using a qualified RICS Registered Valuer for your capital gains tax valuation is strongly recommended. A professional capital gains tax surveyor will assess the property in detail, research appropriate market comparables for the valuation date and provide a clear, well-reasoned report to support your calculation.

This can be particularly important where the property is unusual, has been significantly altered, is part of a portfolio, or where there is a risk that HMRC may question the value used. Having an independent, professionally prepared valuation can reduce the likelihood of disputes and provide a stronger position if HMRC or the Valuation Office Agency review your return.

The cost of a capital gains tax valuation depends on factors such as the type of property, its size and location, the relevant valuation date and the complexity of the case. For straightforward residential properties, fees are typically lower than for larger or more complex commercial assets or portfolios, where additional research and reporting may be required.

We will always provide a clear fee proposal in advance, tailored to your specific circumstances and the level of detail required. To obtain an accurate quote for your capital gains tax valuation, please contact our team with brief details of the property and the valuation date.