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-   -   UK CGT on property post 6/4/15. Valuation? (https://www.englishforum.ch/finance-banking-taxation/297075-uk-cgt-property-post-6-4-15-valuation.html)

dannyt986 06.03.2020 09:07

UK CGT on property post 6/4/15. Valuation?
 
As you may know since 6 April 2015 non residents have been liable to UK capital gains on property sales

The taxable amount is either the gain since 2015 or the total gain during ownership pro-rated between pre- and post-2015 periods of ownership, at the tax payers choice.

Does anyone know what valuation bases HMRC will accept. A chartered surveyor will charge 750gbp for a valuation, or I can put something together using rightmove value statistics for the postcode and property type...

fatmanfilms 06.03.2020 09:23

Re: UK CGT on property post 6/4/15. Valuation?
 
Quote:

Originally Posted by dannyt986 (Post 3154743)
As you may know since 6 April 2015 non residents have been liable to UK capital gains on property sales

The taxable amount is either the gain since 2015 or the total gain during ownership pro-rated between pre- and post-2015 periods of ownership, at the tax payers choice.

Does anyone know what valuation bases HMRC will accept. A chartered surveyor will charge 750gbp for a valuation, or I can put something together using rightmove value statistics for the postcode and property type...

Depending on the tax involved it's probably worth using a chartered surveyor, however a valuation is always an opinion rather than a fact. HMRC can query the valuation, if you think you have strong evidence then OK, however average Rightmove asking prices & Land registry sold prices are a long way apart, HMRC know this.

AbFab 06.03.2020 17:09

Re: UK CGT on property post 6/4/15. Valuation?
 
Presumably the sale price in the contact is the figure. Until you sell there is no liability...

fatmanfilms 06.03.2020 17:55

Re: UK CGT on property post 6/4/15. Valuation?
 
Quote:

Originally Posted by AbFab (Post 3154952)
Presumably the sale price in the contact is the figure. Until you sell there is no liability...

No he needs the 6 April 15 as the base or cost price, from that he can add stamp duty & legal costs of purchase. Then after deducting agents & solicitors fees he can calculate his taxable profit.

CGT is a tax on disposal of an asset at market value on the day of the transfer, if you were to gift it to your children for free or at a reduced cost, CGT is still payable based on full market value.

Landers 08.03.2020 20:10

Re: UK CGT on property post 6/4/15. Valuation?
 
It's self-assessment, put down whatever you think would be acceptable.
https://www.gov.uk/guidance/capital-...sing-from-2015

fatmanfilms 08.03.2020 20:12

Re: UK CGT on property post 6/4/15. Valuation?
 
Quote:

Originally Posted by Landers (Post 3155744)
It's self-assessment, put down whatever you think would be acceptable.
https://www.gov.uk/guidance/capital-...sing-from-2015

However interest & fines will apply if they believe you have defrauded them. Far better to ask for a post transaction valuation check first. https://www.gov.uk/government/public...tal-gains-cg34

CH_Me 09.03.2020 00:02

Re: UK CGT on property post 6/4/15. Valuation?
 
Quote:

Originally Posted by dannyt986 (Post 3154743)
As you may know since 6 April 2015 non residents have been liable to UK capital gains on property sales

The taxable amount is either the gain since 2015 or the total gain during ownership pro-rated between pre- and post-2015 periods of ownership, at the tax payers choice.

Does anyone know what valuation bases HMRC will accept. A chartered surveyor will charge 750gbp for a valuation, or I can put something together using rightmove value statistics for the postcode and property type...

I just did my tax return after selling a place in the UK last year. They ask if you got a valuation prior to 6/4/2015 and whether you paid for that valuation. I had my properties re-valued just prior to that date.

Not sure if you have already sold but be aware that Non Residents need to inform HMRC and complete a calculation within 30 days of selling. I was able to defer payment and submitted the calculation with my tax declaration. https://www.gov.uk/guidance/capital-...ntial-property

This year this requirement will be extended to UK tax residents as well: https://www.gov.uk/government/news/g...property-sales


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