Capital Gains Tax Valuation

When Do I Need a Capital Gains Tax Valuation?

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 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.

Capital Gains Tax Valuation Quote

Capital Gains Tax Valuation, Harding Chartered Surveyors
Capital Gains Tax Valuation, Harding Chartered Surveyors

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.

Benefits of a Capital Gains Tax Valuation

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.

Is a capital gains tax valuation a worthwhile investment?

From as little as a few hundred pounds, you can obtain an accurate capital gains tax valuation that could help you reduce your tax contributions by thousands of pounds. Plus, you’ll have the required evidence to challenge or raise a dispute.
At Harding Chartered Surveyors, we’re a team of experienced RICS registered valuers and surveyors that work independently of banks and lenders, meaning you can rest assured we have your best interests at heart. Call us today on 020 3598 6730 to speak with a qualified valuer directly.