Property Valuations for CGT Purposes & Capital Gains Tax Valuation
If you sell your London property, you’ll need to pay capital gains tax, which is usually based on the profit from the sale. However, in some situations, you’ll need a professional market valuation from a qualified RICS registered valuer in London.
At Harding Chartered Surveyors, we remove the stress from calculating and paying capital gains tax by providing accurate and timely valuations. Whether you’re selling an inherited property or want to calculate your tax obligations on a buy-to-let home, we can help you.
How does capital gains tax affect London residents?
You need to pay capital gains tax when you sell or ‘dispose of’ an asset that’s increased in value. Your tax obligations are calculated on your gains rather than the selling price. If you bought a house in London for £200,000 and later sold it for £500,000, you’d pay tax on the gain of £300,000.
Regarding capital gains tax, disposing of an asset can mean:
- Selling it
- Trading it for another asset
- Gifting if to somebody else
- Gaining compensation, such as an insurance payout
The amount you pay depends on your taxable income, the gain and any entitled income tax reliefs. If you’re a higher rate taxpayer, capital gains tax is equal to 28% on gains from residential properties and 20% on gains from other assets.
You may still need to pay capital gains tax on assets which sold at a loss if your total taxable gains for the year exceed the tax-free allowance. Contact our RICS registered valuers for more information.
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:
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.
Sara Thomas09:07 19 Jan 21The homebuyer’s report carried out by Harding Chartered Surveyors was clear informative and timely. The level of detail was just what I needed in order to appreciate what the property needed doing and to help me with my decision to proceed with the purchase process.Aimee Glensor19:09 08 Jan 21Really helpful, made the process easy and really efficient service even though it was over the holiday period. Would def recommend / use againClaudio Mascolo18:24 30 Nov 20Kate is very responsive and also took time to advise me on the phone at the very beginning. Scott Ingham did our report. It was thorough and informative. Felt in safe professional hands throughout.John Simmons15:53 29 Oct 20Martina Glaser17:56 28 Oct 20Scott completed a survey for me on a flat purchase and both he and Kate were great – very quick to respond, knowledgeable, thorough and happy to address any additional questions I had. Would definitely recommend and use them again.Bene Walters10:47 05 Oct 20I requested Harding to provide a valuation for a lease extension. Albert Wellington was in charge of my property and he was extremely professional and helpful in addressing all my concerns. I would recommend him and the company with no hesitation.Claire Brown14:17 19 Aug 20A very efficient, timely and thorough service for us, as we go through the house buying process. I’d definitely use them again.Nicholas R.10:05 23 Jul 20Very satisfied with service. Report was delivered promptly and provided the information we needed.Richard Denison Gay14:49 02 Jun 20Excellent service; professional, helpful, communicative and courteous as well as relatively quick. I would highly recommend.Marianna Ciampa14:25 30 Jan 20Very efficient and professional. I had my survey few months ago before buying my house and I am still following the advice from the survey to fix and repair what needed. I dealt with Scott Ingham and I think he worked very accurately and checked everything very carefully. Highly recommended.Amel Ahmed16:15 13 Nov 19Needed a valuation for a property purchase and can honestly say the service was 1st class from start to finish. Queries were dealt with promptly and followed up via telephone to make sure I was happy with the responses.The team are extremely knowledgeable.Thank you Kate, Albert, David and the rest of the team I will definitely use the company again.Millie Jones16:07 30 Oct 19Harding’s were great – very responsive, gave a very clear and detailed report and were happy to run through their comments with me over the phone.Emma Goldschmidt16:21 01 Oct 19Brilliant thorough service!Jennifer Smith11:12 30 Aug 19Harry Coaker09:46 22 Aug 19Dealt with James Brook, very efficient and professional, James had the report sent out to us within 24hrs. would highly recommend.Karen Royal21:33 14 Aug 19David Good10:34 20 Jul 19Harding Chartered Surveyors are a very professional business who handled a challenging task for us with ease. I highly recommend them and will be using their services again.Karen Ng22:30 01 Jul 19Very efficient service and very detailed report. We are very satisfied.Lily Kwong10:38 24 Jun 19Really quick turn around and professional service.Sue Hodgkins16:42 20 Jun 19Neill Ghosh14:22 11 Jun 19Have used for years and always been very happy. Competitive on service and always good on deadlines and quality. Recommended.tom binks17:56 09 Apr 19Kevin Loughlin20:27 28 Mar 19The surveyor turned up on time as planned to survey the roof, both inside and out, then was happy to discuss it all with us afterwards. Bit tricky in high winds. Report arrived 2 days later, just what we needed. Professional and thorough. Recommended.Jon Brennan09:44 01 Mar 19Quick, responsive and very thorough. Would definitely recommend Hardings to others, and will come back to them the next time I need a survey completed.Abi and Andy La Fontaine20:57 20 Feb 19Quick, efficient and excellent service. Came as a recommendation from a friend and we’d happily recommend too.Bradley Roth01:56 16 Feb 19Giulio Pepe16:25 16 Dec 18Thorough and professional surveyors. Very happy with their service. Highly recommended.Margaret Rowley16:09 03 Dec 18Simon Wilson15:54 10 Nov 18Good, thorough, and promptly scheduled homebuyer survey in Fulham. The surveyor called me and explained everything clearly.Daniel Vernazza10:41 29 Apr 18I highly recommend David. Very good technical knowledge. He was always available for our questions, which included a detailed call on the same day as the survey. The written survey report was clear, detailed and included pictures and estimates of the cost of repairs.James Palairet11:16 09 Jan 18David gave us a fantastic service and has been a huge help during our property purchase process. We have had 2 surveys carried out, both of which were arranged very promptly. Thorough and extremely useful telephone calls and full written reports were received shortly afterwards. David’s reports and advice have been invaluable to us.Sarah Dixon14:13 08 Jan 18I have worked with David and his team as a buying agent for many years now. The service they offer is an excellent one, timely with a commonsensical approach. I would recommend them to anyone.William Sharples08:57 05 Oct 17James provided a very professional and thorough service, highly recommended.Elif Erdine14:30 04 Oct 17Very experienced firm and friendly staff. Highly recommended.
Why obtaining a capital gains tax valuation for a London property is beneficial
By obtaining a capital gains tax valuation from a RICS registered valuer, you can:
- Gauge Your Property’s Accurate Value
Let our RICS registered valuers give you an independent and impartial house valuation.
- Avoid Paying More Tax than Necessary
Don’t pay additional capital gains tax on overvalued London homes.
- Appeal to the District Valuer
Obtain the evidence you need to raise a dispute if your tax obligations have been miscalculated.