A CGT property valuation london owners ask about is an independent valuation that may be needed when a property is sold or transferred, and this guide from IQSURV, a RICS regulated firm, explains the basics.
When a CGT property valuation london owners need can help
Tax rules are complex and change over time, so speak to an accountant or HMRC about your own position. We provide the valuation only and do not give tax advice.
If you are selling, gifting or transferring a property that is not your main home, you may need to know what it was worth at a particular date. A capital gains tax (CGT) property valuation is an independent opinion of value that can be used as evidence of that figure. This guide explains in plain English what it is and when people ask for one.
What is a CGT property valuation?
A CGT valuation is a professional valuation of a property as at a specific date. Depending on the situation, that date might be when you acquired the property, when a change of use took place, when you inherited it, or when you disposed of it. It is a snapshot of value on the date that matters, rather than a figure for today.
When might you need one?
People commonly look for this kind of valuation when selling or giving away a second home or buy-to-let, when a property has been inherited, when ownership is being transferred between family members or into or out of a company, or when a property is being divided. Whether CGT applies to your circumstances, and which date and figure you need, is a question for your accountant or HMRC, not for a surveyor.
Why a RICS valuation?
A valuation from a RICS regulated firm is prepared by a qualified valuer to professional standards, and set out in a written report. That independence can help if the figure is later queried. An informal estimate from an estate agent or an online tool is generally less robust as evidence.
Valuing a property in the past
Many CGT valuations are retrospective, which means the valuer looks back to a date that may be months or years ago. The valuer considers the type, size, condition and location of the property, and compares sales of similar homes around the relevant date. Records such as old photographs, previous reports, purchase documents and details of improvements can help the valuer reach a well-supported opinion, so gather what you have.
Practical tips
Confirm the exact valuation date with your accountant or tax adviser before instructing a valuer. Keep records of the purchase, any improvement work and any previous valuations. Tell the valuer why the valuation is needed so the report is prepared for the right purpose. Share the finished report with your adviser, who can say how it fits into your tax position.
Valuations and surveys with IQSURV
IQSURV is a RICS regulated firm serving London, offering RICS valuations alongside Level 2 Home Surveys and Level 3 Building Surveys. If you need a CGT property valuation in London, get in touch to discuss your situation or request a quote. You may also find our probate and Help to Buy valuation guides useful. Please note that we do not give tax or legal advice.
Next steps after reading about cgt property valuation london
If this guide on cgt property valuation london raises questions about your own property, you may find our guides on RICS Red Book valuations and market valuation in London useful. The Royal Institution of Chartered Surveyors sets professional standards for the industry, and you can read more on the RICS website. To discuss your situation, get in touch or request a quote through our home page, or call 020 3780 5386.