VALUATION

[kanrent]

Hi im actually a non resident landlord hope its ok to post here

as from April 2015 non res landlords are subject to capital gains tax, it has been suggested that i get a valuation from that date as a starting point for CGT in case i sell in the future, im told that a valuation by an estate agent is a waste of time as they have no credibility with HMRC needs to be a member of RICS    who will charge around 500 pounds, HMRC has it's own district surveyor who will do the work if the property is sold in the future, i just wondered if anyone here has had any experience with valuations of this type ?  im happy to leave it to HMRC district valuer if  he doesn't err in favor  of  HMRC

[Richlist]

This is surely a case of how long is a piece of string.

I have no experience or involvement in these matters but can apply a certain logic to answer the question.

I would argue that x3 individual valuations from local estate agents together with sale prices achieved by similar property ( in the same road and on the same development) and land registry records  would be entirely satisfactory.

It's worth remembering that HMRC and the tax matters they precise over are nearly always open to interpretation and negotiation. It's entirely honourable to handle one's tax affairs in a logical, sensible and appropriate manner and provided the method meets the above criteria it should not result in rejection by the tax office.

Stand up for common sense, do your own thing, make a forcefully argument in favour of your methodology and invite them to detail any objections.

[Grampa]

Estate agent do market appraisals not valuations unless they qualified surveyors and then all then do is go into the local estate agent offices and ask their opinion  which they put on their valuation.

But they have the insurance in place if they get it seriously wrong. 

[Richlist]

Thanks for that correction but it doesn't alter my opinion.

I still maintain that together with sale prices achieved it is a reasonable methodology at virtually nil cost of providing a realistic historic valuation.

There have been situations where professional valuations have been seriously out of step with real world sale prices indicating that the use of qualified surveyors is not perfect.

[Melboy]

Have you spoken to HMRC and enquired what their rulings and acceptance are on property valuations?

EA's did the drive-by council tax bandings in 1990.

RICS do not value a deceased person's property for probate and DWP & HMRC.

Just two examples of where it can be done satisfactorily at low cost to you perhaps?