What is a capital gains tax valuation?
A Capital Gains Tax valuation is an opinion of a property’s market value at a specified date. A tax calculation may require a market value rather than a purchase price in some situations, for example certain gifts, connected-party transactions or other disposals where tax rules call for a valuation.
When might you need one?
The correct valuation date and basis depend on how the property was acquired or disposed of and the taxpayer’s circumstances. An accountant, tax adviser or HMRC can confirm whether a valuation is required and which date it should cover before you instruct a report.
What to expect
- Confirm the tax event and valuation date with your tax adviser before booking.
- We agree the purpose, valuation basis, inspection scope and information available for that date.
- The surveyor prepares an independent report explaining the valuation conclusion and relevant assumptions.
- Your tax adviser can use the report as supporting evidence when preparing or reviewing the tax calculation.
RICS Red Book standards
We adhere to the RICS Valuation – Global Standards, commonly known as the Red Book, when preparing formal valuations. The agreed instruction defines the valuation purpose, date, basis, scope and assumptions for each report.
Important information
A valuation report is not tax advice and does not calculate or confirm any tax due. The taxpayer remains responsible for their return and should take advice on the required basis and date. Our formal valuation work is prepared in accordance with the RICS Valuation – Global Standards (the Red Book), subject to the agreed purpose, date and scope.
Every instruction is specific to the property and intended use. Contact us to discuss the requirements and provide any forms or guidance you have received.