Valuations For Tax Purposes
We undertake valuations for a variety of reasons in connection with tax liabilities.
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.
Capital Gains Tax
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.
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
Stamp duty is a tax on the acquisition of land or property over a certain price. There are different thresholds for residential and non-domestic property and how much you pay depends on the use, and whether you are eligible for relief or an exemption.
Stamp duty is usually paid on the purchase price. In some cases, for example, where the transfer is by way of a gift, or the buyer and seller are members of the same family, a valuation will be required. HMRC employs professional valuers to check valuations; appointing a RICS Chartered Surveyor and Registered Valuer to provide a detailed, well evidence valuation report should result in a smoother process later down the line.
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Related Services
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.
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