Red Book valuations prepared for capital gains tax, both current and retrospective. They cover March 1982 and April 2015 rebasing, are reported for professional reliance, and are negotiated with HMRC and the District Valuer where the figure is queried.
Capital gains tax turns on two numbers: what an asset was worth when it was acquired, and what it is worth when it is sold or given away. Where either of those is not a simple purchase price (an inherited property, a gift, an asset held for decades, or a part-disposal), the figure has to be valued, and HMRC will test it. We prepare those valuations to the RICS Red Book, with the evidence and reasoning that let your accountant rely on them and that hold up if the District Valuer asks questions.
We act for individuals, trustees, companies and the accountants advising them, on residential and commercial property across London, Surrey, Hertfordshire, Sussex and the wider South East.
A valuation is required whenever a gain has to be computed without a clean arm’s length price at one or both ends: a property received by gift or inheritance, a transfer between connected parties, a part-disposal, a change of use, or the apportionment between exempt and chargeable periods on a property that was not always a main residence. Getting the figure right protects you from over-paying and from a later enquiry.
For capital gains tax, value means market value, defined by s.272 TCGA 1992 as the price the asset might reasonably be expected to fetch on a sale in the open market. That statutory test maps directly onto the Market Value basis in the RICS Valuation – Global Standards (the Red Book), so a compliant report speaks to exactly the standard HMRC applies. Where a property changes hands other than at arm’s length (a gift, or a transfer between connected persons under s.18 TCGA 1992), s.17 deems the disposal to take place at market value regardless of what, if anything, actually passed between the parties. It is that deemed figure that has to be valued, and that HMRC’s District Valuer will test.
Selling part of a garden, granting a lease out of a freehold, or disposing of a share in a property is a part-disposal. Under s.42 TCGA 1992 the allowable cost is apportioned by the fraction A / (A + B), where A is the consideration for the part disposed of and B is the market value of the part retained. The retained interest therefore has to be valued before the gain can be computed at all. An over- or under-stated B feeds straight through to the tax. We value both sides of the apportionment on a consistent basis so the computation holds together.
Where a property was your main residence for only part of the ownership period (or part of it was let, or used for business), private residence relief under ss.222–223 TCGA 1992 shelters a proportion of the gain. Getting that proportion right often depends on valuing the property at the point its use changed, or valuing a distinct part of it, rather than applying a simple time-apportionment. We provide the figures the relief calculation needs.
For assets held since before 31 March 1982, the gain is generally computed from the property’s value on that date rather than its original cost, ‘rebasing’ to 1982 under s.35 TCGA 1992. Establishing a reliable 1982 value decades after the event is precise, evidence-driven work, and it is exactly the kind of retrospective valuation HMRC scrutinises closely. We build the figure from contemporary evidence and document it so it withstands that scrutiny. I have written separately on how a property is valued as at a past date, the dates that matter, and the no-hindsight rule that governs the work.
When non-resident capital gains tax was extended to UK residential property from 6 April 2015, owners were generally able to rebase to the property’s value on that date, so that only the gain accruing after April 2015 is charged. A similar rebasing applies to UK commercial property and indirect holdings brought into charge from April 2019. Establishing a robust April 2015 value is central to computing the gain correctly, and we prepare it on the same evidenced, defensible basis.
HMRC refers CGT property figures to the District Valuer in the same way it does for inheritance tax. Where the DV queries a valuation (current or retrospective), we handle the negotiation, defend the figure on its evidence, and resolve the difference. Because the valuation is built for exactly that test from the outset, the discussion stays on firm ground. We have written separately on what a District Valuer referral actually involves, and a retrospective CGT case in Bromley shows how an evidenced figure holds up in practice.
Every valuation is director-led, reported for professional reliance, and prepared to be useful to your accountant first and persuasive to HMRC second. Fees are agreed in advance, and we are glad to talk through a matter with you or your adviser before any formal instruction so the basis and date of valuation are right from the start.
Whenever the gain cannot be worked out from a straightforward purchase and sale price: a gifted or inherited property, a transfer to a connected person, a part-disposal, or where only part of the ownership period qualifies for private residence relief. In those cases HMRC expects a professional valuation, not an estimate.
For assets owned since before 31 March 1982, the chargeable gain is generally calculated from the value on that date rather than the original cost. We prepare that historic ‘rebased’ value from contemporary evidence so the computation is correct and defensible.
When non-resident CGT on UK residential property began on 6 April 2015, owners could generally rebase to the value on that date, so only the post-2015 growth is taxed. A robust April 2015 valuation is essential to compute the gain, and a parallel April 2019 rebasing applies to commercial property.
The date-of-death value normally becomes the base cost for CGT when a beneficiary later sells. That is why an accurate probate valuation figure matters in both directions, and why, if it was never properly established, we can value retrospectively to fix the base cost before a sale.
A part-disposal (selling off part of a garden, granting a lease, or disposing of a share) is governed by s.42 TCGA 1992. The allowable cost is apportioned using the fraction A / (A + B), where B is the market value of the part you keep. So the interest you retain has to be valued before the gain can be worked out, and we prepare that figure alongside the disposal.
Yes. A gift, or a transfer between connected persons, is treated under s.17–18 TCGA 1992 as taking place at market value, whatever was actually paid. That deemed market value is your acquisition cost, so a Red Book valuation at the date you received the property is what fixes the base cost and protects you if HMRC enquires later.
HMRC refers property valuations to the District Valuer. We negotiate with them directly, defend the figure on its documented evidence, and resolve the difference, the same service we provide on inheritance tax.
