Capital gains tax valuations

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What is capital gains tax?

When you sell an asset (in this case, a property) that has increased in value since you bought it, you will be charged tax on the gain that you have made. The rate varies based on several factors, such as your income and the size of gain. This does not apply to you if you only have one home which is used as your sole residence.

When Do I Need a Market Valuation to Calculate Capital Gains Tax?

Usually, capital gains tax is based on the difference between what you paid for an asset and how much you sold it for, but you need to submit a market valuation to HMRC or the district valuer if any of the following situations apply:

  • Gifts
    Capital gains tax is based on the value’s property on the date it was gifted.
  • Assets sold for less than their value to benefit the buyer
    Capital gains tax is based on the property’s market value at the time of the sale.
  • Inherited assets
    Capital gains tax is based on the property’s market value at the time of the benefactor’s passing.
  • Assets purchased before April 1982
    Capital gains tax is based on the property’s value on the 31st of March 1982.

If you require an independent valuation for any of the above purposes please contact us to discuss your requirements.