Capital gains tax valuation, at today’s date or a date in the past
A RICS valuation for capital gains tax at the date HMRC needs, such as the day you inherited, were given or transferred the property, so the gain you report rests on evidence.
When do you need a capital gains tax valuation?
The tax rules fix the date the property has to be valued at. It does not need to be accessible now: if it has been sold or altered since, the valuation can be made from the outside and from records of the time, and the report says so.
Selling a home you inherited
Your starting value is the value at the date of death. If no RICS valuation was done for probate, one can be prepared now, as at that date.
A home you were given, or gave away
A gift or a transfer to family is usually treated as made at market value, so the value on the day of the transfer sets the gain.
Moving a property into your company
Transferring a rental property to a company you control is normally treated as a sale at market value, so the value on the day of transfer is needed.
Owned since before April 1982
Gains on property held at 31 March 1982 are worked out from its value on that date, so the valuation is as at March 1982.
What makes a capital gains figure stand up
The right date
The date of death, gift, transfer or 31 March 1982 that the tax rules fix, not the day of the inspection.
Evidence from that time
Sales from around that date, so the figure reflects the market then rather than the market now.
The property as it was
Valued in the condition and layout it had on that date. Later extensions or improvements are left out, and their cost is usually claimed separately.
HMRC can ask the Valuation Office Agency to check a property value, and you can ask HMRC to check a valuation after the sale and before you file. The report sets out the evidence either check looks at.
The starting value decides the gain
The gain is the sale price less the value when you acquired the property, less allowable costs. Where you inherited or were given it, that starting value comes from a valuation, so it sets how much tax there is.
Illustrative figures, not a real instruction. A starting value set too low makes the gain, and the tax, larger. A sale of UK residential property with tax to pay normally has to be reported, and the tax paid, within 60 days of completion. Your accountant will advise on costs, reliefs and the rate.
The market as it was on the date that matters
A capital gains figure is often needed at a date years ago. The evidence is sales from that time, adjusted for how each differs from the property as it was then, and the report shows the working.
What is a capital gains tax valuation?
A capital gains tax valuation is a RICS valuation of a property at the date the tax rules fix: often the date you inherited it, were given it or transferred it, or 31 March 1982. It sets the starting value the gain is worked out from, and is usually retrospective, built from sales evidence of that time. It is prepared by a RICS Registered Valuer and sets out its evidence, so the figure can be checked by HMRC.
- Who asks for one
- You, your accountant or your solicitor, usually before a sale or before the tax return.
- What you get
- A Red Book report as at the date required, with the comparable evidence from that time set out.
- What it is not
- It is not a survey of the property’s condition, and it is not tax advice: your accountant works out the tax.
- Dates long ago
- The further back the date, the more the report relies on historic sales records. We will tell you at the start if the evidence for a date is thin.
How much does a capital gains tax valuation cost?
Your fixed price is confirmed in writing before you instruct us. If you need values at more than one date, tell us at the start so each one is quoted.
What moves the price
- How far back the date is
- The further back, the more the market at that time has to be rebuilt from historic sales.
- The size and value of the property
- A larger or unusual property takes longer to find comparable evidence for, which is where most of the work sits.
What the fee covers
- The inspection, where the property can be accessed
- The sales research at the date required
- A Red Book report by a RICS Registered Valuer
- VAT
From enquiry to report, without the chasing.
Tell us the property and the date
The address, and the date the value is needed at: the date of death, gift, transfer or 31 March 1982.
Get a fixed price in writing
A firm figure within the hour in office hours. Not an estimate, not a range.
Confirm and sign
We send the terms of engagement to review and sign electronically.
Access, if there is any
If the property can still be visited, we arrange it. If it has been sold or changed, we say at the start how the valuation will be made without going inside.
The research
The valuer gathers sales from around the valuation date, and records of the property as it was then.
Your report, and answers
You get the report, and anything in it you want explaining, we explain.
Questions we get asked.
Do I need a RICS valuation for capital gains tax?
HMRC needs the market value at the relevant date; it does not insist on a particular kind of valuer. Where the figure makes a real difference to the tax, or may be questioned, a RICS valuation is the usual basis because it sets out its evidence. Your accountant will advise.
Can you value a property at a date in the past?
Yes. Valuations at a past date are routine. The report values the property as it was on that date, using sales from around then.
I inherited the house and there was no probate valuation. What now?
A valuation can be prepared now, as at the date of death. That figure becomes your starting value for working out the gain.
The property has already been sold. Can you still value it?
Usually. If we cannot get inside, the valuation may rest on an external inspection and records of the property at the time, and the report says so.
What about improvements I made after I acquired it?
The value at the earlier date is of the property as it was then. The cost of later improvements is usually deducted separately when the gain is worked out, so keep the invoices and receipts; your accountant will advise.
I live abroad. Which date applies?
Owners who are not UK resident are normally taxed only on the gain since April 2015 on UK homes, so a valuation as at 5 April 2015 is often needed. Your accountant will confirm the date that applies to you.
How soon do I need to report the sale?
For UK residential property with tax to pay, the sale normally has to be reported, and the tax paid, within 60 days of completion. Book the valuation early so it does not hold that up.
What if HMRC questions the figure?
HMRC can refer a property value to the Valuation Office Agency. The report sets out the evidence the figure rests on, which is what that check looks at.
Read more about capital gains tax
Capital gains tax valuation near you.
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