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:
- 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.
Karen Ng
22:30 01 Jul 19
Very efficient service and very detailed report. We are very satisfied.
Lily Kwong
10:38 24 Jun 19
Really quick turn around and professional service.
Neill Ghosh
14:22 11 Jun 19
Have used for years and always been very happy. Competitive on service and always good on deadlines and quality. Recommended.
Kevin Loughlin
20:27 28 Mar 19
The 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 Brennan
09:44 01 Mar 19
Quick, 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 Fontaine
20:57 20 Feb 19
Quick, efficient and excellent service. Came as a recommendation from a friend and we’d happily recommend too.
A Google User
16:25 16 Dec 18
Thorough and professional surveyors. Very happy with their service. Highly recommended.
A Google User
15:54 10 Nov 18
Good, thorough, and promptly scheduled homebuyer survey in Fulham. The surveyor called me and explained everything clearly.
A Google User
14:12 18 May 18
We had two homebuyers surveys conducted by James. He was extremely knowledgeable, transparent and went the extra mile to inform my girlfriend and I of the results of each survey. Would highly recommend.
A Google User
10:41 29 Apr 18
I 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.
A Google User
11:16 09 Jan 18
David 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 Dixon
14:13 08 Jan 18
I 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.
Elif Erdine
14:30 04 Oct 17
Very experienced firm and friendly staff. Highly recommended.
Very efficient service and very detailed report. We are very satisfied.
Really quick turn around and professional service.
Have used for years and always been very happy. Competitive on service and always good on deadlines and quality. Recommended.
The 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.
Quick, responsive and very thorough. Would definitely recommend Hardings to others, and will come back to them the next time I need a survey completed.
Quick, efficient and excellent service. Came as a recommendation from a friend and we’d happily recommend too.
Thorough and professional surveyors. Very happy with their service. Highly recommended.
Good, thorough, and promptly scheduled homebuyer survey in Fulham. The surveyor called me and explained everything clearly.
We had two homebuyers surveys conducted by James. He was extremely knowledgeable, transparent and went the extra mile to inform my girlfriend and I of the results of each survey. Would highly recommend.
I 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.
David 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.
I 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.
Very 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.