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Valuation for tax purposes

We provide tax-driven valuation advice to support a wide range of Clients whether appointed directly or through their Accountant or Tax Planning Consultant and to assist Balance Sheet revaluations.

We hold data for 1982 valuations and will sensitively assess improvements to deduct these and minimise capital gains tax

A Chartered Valuation Surveyor can assist with valuations for many purposes but tax valuations are a rather specialist area where local expertise and experience really counts. Whether for inheritance tax, capital gains tax or to assess the value of a property being gifted as part of inheritance tax planning, valuations for tax purposes usually have to be negotiated and agreed with the Valuation Office Agency. So the valuation and the Chartered Valuation Surveyor’s ability to justify and defend it becomes critical. Most valuations for tax planning or tax management are generally required as the property being valued has not been sold, so there is no ‘arms length market transaction’ taking place.

So it is all about the homework, the comparable valuation evidence and how that is interpreted usually to a retrospective valuation date, i.e., value as at date of gift, date of inheritance, date of transfer etc... Then, the outcome will depend on the negotiation skills of the Chartered Surveyor acting for you.

A valuation for tax purposes will usually be required for:
  • a disposal subject to capital gains tax,
  • as part of tax planning when a property is being ‘gifted’,
  • inheritance tax following a death.

A further complexity in tax valuations is that the valuation date is often a date in the past, either because it takes time for probate to be granted or because for capital gains tax one has to establish the value either at the acquisition date or where the property was bought before 1982 or 1965 to elect for a 1982 or 1965 valuation instead.

Rics
The Royal Institution of Chartered Surveyors (RICS) represents the property profession in 146 countries, and regulates its ‘Chartered’ members. All valuations are subject to the RICS International Valuation Standards otherwise known as the ‘Red Book’.
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