Capital Gains Tax Valuation

Service Description, Benefits & Features

The current approach to Capital Gains Tax (CGT) on property in the UK is complex. There is a divergence in the treatment of residents and non-residents in respect of non-residential property. On top of this, there is a variation in the CGT treatment, depending on the type and value of property being disposed of.

If you’re liable to pay CGT on the disposal of your property, our qualified Chartered Surveyors, who are RICS Registered Valuers, have the necessary knowledge and expertise to carry out valuations for this purpose. Capital Gains Tax may be payable when you’re ‘disposing of’ a property that has increased in value. Your tax obligations are calculated on their gains rather than the selling price.

For Capital Gains Tax, ‘disposing of’ a property includes: selling it, trading it for another property or asset, gifting it to somebody else and for gaining compensation, such as an insurance pay-out.’

Capital Gains Tax Valuation

Since 1982, any gain you make from a property investment is subject to Capital Gains Tax.

A property valuation is needed to provide reliable information on the worth of the property, and is especially useful where an individual or entity is charged much higher or lower taxes than they should be liable for. Our Chartered Surveyors & Registered Valuers are experienced in providing a detailed report for you to submit to your Accountant or HMRC. We can also negotiate for you if the District Valuer disputes your valuation.

It is important to consider the condition and status of the property at that date. If you have already sold the property, we can undertake this exercise on a drive-by valuation or desktop basis.

What is Capital Gains Tax?

Capital gains tax (CGT) is payable when you sell an asset that has increased in value since you bought it. The rate varies based on a number of factors, such as your income and size of gain. For residential property it may be 18% or 28% of the gain (not the total sale price).

Who is the District Valuer?

District Valuer Services (DVS) is the specialist property arm of the Valuation Office Agency (VOA).
They can provide independent, impartial, valuation and professional property advice across the entire public sector, and where public money or public functions are involved.
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How to Calculate a Gain or Loss

Capital gains and losses are calculated after deducting:
  • The costs of acquisition and enhancing the asset
  • Incidental costs of buying and selling, including Stamp Duty Land Tax, legal fees, agent fees etc.
  • Capital losses: current year and brought forward
  • Surplus trading losses
  • The CGT annual exemption
  • Any available tax reliefs
The rate of capital gains tax that applies will be either:
  • 18% or 28% for residential property
  • 10% or 20% for all other assets
depending on the taxpayer’s other income levels. There are special rules for part disposals. The gains on disposal of some assets are subject to income tax rates.
If you wish to discuss a Capital Gains Tax Valuation with one of our team,  please do not hesitate to complete our online form, contact your Local Chartered Surveyor or email:
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