Valuations For Tax Purposes

We undertake valuations for a variety of reasons in connection with tax liabilities.

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We undertake valuations for a variety of reasons in connection with tax liabilities

The valuation of assets for tax purposes can be a complex matter. As such, HM Revenue & Customs employs professional valuers to check valuations submitted for these purposes. Appointing a RICS Chartered Surveyor and Registered Valuer to provide a detailed, well evidenced valuation report should lead to a smoother process with HMRC. Our experienced team liaise with District Valuers in connection the services below and are prepared and able to handle any follow up enquiries on your behalf.

Property Valuations for Tax Purposes

Clear, independent and well-evidenced property valuations prepared by experienced RICS Registered Valuers.

Specialist property valuation advice

A property valuation may be required to support calculations or reporting for Capital Gains Tax, Inheritance Tax or Stamp Duty Land Tax.

Our RICS Registered Valuers provide current and retrospective valuations of residential, commercial and specialist property across the South West. We work with private clients, executors, trustees, solicitors, accountants and tax advisers, providing independent valuation advice for the relevant property interest and valuation date.

Why appoint a RICS Registered Valuer?

Property valuations prepared for taxation purposes may be reviewed by HM Revenue & Customs or the Valuation Office Agency.

A valuation from an RICS Registered Valuer provides a clear and reasoned opinion of value based on appropriate investigations, valuation methodology and market evidence. Our reports explain the basis of value adopted, the relevant assumptions and the evidence supporting our conclusions.

While no valuer can guarantee that HMRC will accept a valuation without enquiry, a professionally prepared report provides a robust basis for the figure submitted by the client or their tax adviser.

Capital Gains Tax valuations

Capital Gains Tax is a tax on any profit you make when you sell, or dispose of, an asset that’s increased in value. The amount you are taxed is based on the gain, not the amount of money received. The gain is usually the difference between what you paid for an asset and how much you sold it for. However, there are some situations where you will be required to use the market value instead. These include:

Gifted assets
Assets sold for less than they were worth
Inherited assets
Assets owned before April 1982

Our valuation reports are prepared by experienced Chartered Surveyors who use their market leading knowledge to ensure the figures reported are accurate and supported with relevant comparable evidence. Our reports include a clear and concise methodology to minimise the risk of lengthy and possibly costly disputes at a later stage.

Vickery Holman has roots which date back to 1848 and with Registered Valuers working for the company since the 1980’s, we have internal records of transactions to support our valuations for the required 1982 valuation date.

Minority and partial ownership interests

Where the deceased or taxpayer owns only a share of a property, the value of that interest may not necessarily represent the same proportion of the value of the whole.

Depending on the circumstances, we may need to consider:

The proportion of the property owned;
Whether the interest provides control;
The basis upon which the property is jointly owned;
Rights of occupation;
Restrictions affecting a sale or transfer;
The relationship between the co-owners;
The marketability of the interest;
The practicalities and costs of realising its value; and
The hypothetical purchaser likely to acquire the interest.

We will consider the individual ownership interest and explain any adjustment applied within our report.

Inheritance Tax / Probate

Inheritance Tax is a tax on the estate, comprising property, money and possessions, of someone who has died. Inheritance Tax is normally payable when the value of an estate is above £325,000, unless everything above the threshold is left to a spouse, civil partner, or an exempt charity.

An inheritance tax valuation undertaken by a RICS Registered Valuer is used to determine the tax payable on an estate before it passes to the beneficiaries. In accordance with Section 160 Inheritance Tax Act 1984, our valuers will consider the price the asset might reasonably be expected to fetch if sold in the open market, at the date of the deceased’s passing.

Stamp Duty Land Tax valuations and apportionments

Stamp Duty Land Tax is generally assessed by reference to the chargeable consideration for a transaction. However, a property valuation or apportionment may be required in certain circumstances.

Acting on instructions from a client or their professional adviser, we can provide:

Market Value assessments where required;
Valuations relating to transfers involving connected parties or companies;
Valuations of partial property interests;
Apportionments between residential and non-residential property;
Apportionments involving mixed-use property;
Apportionments between a principal dwelling, annexe and associated land;
Apportionments between buildings, gardens and additional land; and
Just and reasonable apportionments between different elements of a transaction.

Where a property includes an annexe or other subsidiary accommodation, we can assess its physical characteristics and provide an appropriate allocation of value between the relevant elements.

Retrospective property valuations

A retrospective valuation establishes the value of a property at a date in the past.

These valuations may be required as at:

The date of death;
31 March 1982;
The date of a gift or transfer;
A historic acquisition or disposal;
A change in ownership;
A previous accounting date; or
Another date specified by the client’s professional adviser.

We research the property and market as they existed at the relevant date, drawing upon available evidence such as historic photographs, plans, sales particulars, leases, planning records and previous valuation reports.

Our report will clearly explain the evidence considered, the assumptions made and the methodology used to arrive at our retrospective opinion of value.

Responding to HMRC valuation enquiries

HMRC may review a property valuation submitted as part of a tax return or estate valuation. Property valuation matters may be referred to the Valuation Office Agency for consideration.

Where we have prepared the original valuation, we can assist by:

Reviewing the points raised;
Providing further explanation of our methodology;
Supplying additional market evidence;
Responding to written enquiries;
Discussing the valuation with the Valuation Office Agency; and
Negotiating the property value where appropriate.

Valuations Services

Key Contacts

Valuations Case Studies

Accurate Minority Valuations

Inheritance Tax valuation of minority interests in a prime North Cornwall coastal property

RICS red book valuation for CGT

Capital Gains Tax Valuation of Development Land

Probate Valuation and IHT

Probate Valuations and IHT

Inheritance Tax Valuations – Freehold House

Capital Gains Tax RICS Red Book

Inheritance Tax Valuation in Helston, Cornwall

Capital Gains Tax Valuation

Flat in Bristol

Related Services

Valuations

Lease Advisory

Business Rates Consultancy

Surveys

Property Management

Litigation

Valuation For Tax & Legal Purposes FAQs

Why do I need a valuation for Tax Purposes?

An accurate valuation can help in tax planning by ensuring that you are not overpaying or underpaying taxes. It allows you to take advantage of any available tax reliefs or exemptions.

Overall, having your property valued for tax purposes ensures compliance with tax laws and helps you make informed financial decisions regarding your property.

What happens if I underpay property taxes?

If you underpay your property tax, you may be subject to penalties and interest charges. These penalties and interest rates can vary depending on the type of tax and the circumstances of the underpayment.

Overall, it’s essential to ensure that you pay your property tax obligations in full and on time to avoid these potential consequences. If you’re struggling to meet your tax payments, it’s advisable to contact the relevant tax authority as soon as possible to discuss your situation and explore any available options for assistance or payment arrangements.

How often should I get my property Valued for Tax purposes?

While there are specific instances where property valuations are required for tax purposes, it’s also a good practice to periodically review your property’s value, especially if there have been significant changes to the property or the surrounding market conditions. This can help ensure that you’re properly accounting for tax liabilities and making informed decisions regarding your property.

Why should I obtain a RICS Red Book valuation?

A RICS Red Book valuation provides an independent and professionally prepared opinion of value for a clearly defined property interest, purpose and valuation date.

The Red Book sets mandatory standards for matters including the valuer’s independence, terms of engagement, investigations, assumptions, valuation methodology and reporting. This ensures the valuation is transparent, properly evidenced and supported by a clear explanation of how the opinion of value has been reached.

This provides a robust basis for the figure reported to HMRC and enables the valuer to respond effectively if the valuation is subsequently reviewed.

Can you provide a valuation at a historic date?

Yes. We regularly undertake retrospective valuations.

The report will consider the property and market as at the relevant historic date. The assumptions required will depend on the information available about the property at that time.

Does the property need to be inspected?

An inspection will normally be appropriate where the property still exists and access is available.

For a retrospective valuation, the inspection records the property in its current condition. We will then consider evidence of any differences between its present condition and its condition at the relevant valuation date.

Where an inspection is not possible, we will discuss whether a desktop valuation can be undertaken and clearly state the resulting limitations and assumptions.

Will HMRC accept the valuation?

HMRC is entitled to review a valuation and may refer it to the Valuation Office Agency. No valuer can guarantee that a valuation will be accepted without enquiry.

A detailed report prepared by an RICS Registered Valuer will provide a clear explanation of the adopted figure and the evidence upon which it is based.

Can you deal with an HMRC enquiry?

Yes. Where we have prepared the valuation, we can respond to questions concerning the property value and negotiate with the Valuation Office Agency where appropriate.

Can you value a share in a property?

Yes. We can value jointly owned, partial and minority interests in property.

The value of a share will not always represent a straightforward percentage of the value of the whole. We will consider the rights, restrictions, control and marketability associated with the particular interest.

Can you apportion the value of different parts of a property?

Yes. We can provide a just and reasonable apportionment between different property elements where required.

This may include residential and commercial accommodation, a principal dwelling and annexe, buildings and land, or several properties acquired as part of the same transaction.

Do you calculate the tax payable?

No. We provide an independent opinion of the relevant property value.

The client’s accountant, solicitor or tax adviser should advise on the tax treatment, calculation, reporting requirements and availability of any exemptions or reliefs.

I have been very impressed by the speed and efficiency of your service. It was a great pleasure to meet Sam to explain the background and the basis of the valuation request. The figure you have arrived at makes sense to me and allows us to move forward on a solid foundation.

Sam provided a detailed and carefully considered valuation of some unusual properties that will prove exceptionally helpful when the executors report to HMRC.

Great people, they understood my needs as a customer and their professional obligations and struck the right balance. It was very good dealing with your company as it made my difficult circumstances manageable. I had dealt with other firms who I found condescending and dismissive of the customer because they had been paid anyway. Thanks again for running a well organised firm who I would recommend any day.

I have read through your very comprehensive and professional report/valuation. Your valuation is much in line with our expectations and is a reassuring figure. I appreciate your proactivity and support and know who to turn to in the future should we extend our Commercial Property portfolio.

Dear Rebecca. Thank you for the thorough valuation you did for us. It's the most detailed document l have experienced in my many years in business. Thanks again.

Christie was a lovely person to work with and we appreciated her timely submission of the report and her guidance and communication throughout the whole process. Thankyou.

Responses were swift, valuer was approachable and happy to discuss our requirements.

See what our clients say about us

Speak to our valuation team

Whether you require a current or retrospective valuation for Capital Gains Tax, Inheritance Tax, probate or Stamp Duty Land Tax, our team would be pleased to discuss your requirements.