Capital Gains Tax is due on the increase in the value of an asset when you dispose of that asset from when it was purchased or from 1982, whichever is the most recent. For example if you bought your property in 2000 for £450,000 and then sold it in 2016 for £600,000 you would have a chargeable gain of £150,000 which is liable to Capital Gains Tax (reliefs may apply). However, if you have owned your property since before April 1982 to calculate the ‘base value’ for Capital Gains Tax you need to know the value of your property as at 31st March 1982. The chargeable gain is then the difference between the base value in 1982 and the property’s current value.
So how is it possible for valuers who may not have been born in 1982 to calculate the value of your property? We use comparable evidence of sales transactions that we have on file from 1982. The valuation is based on the assumption the property is largely the same now as it was then unless specific renovations and alterations are evident.
It is important to plan for Capital Gains Tax and to determine what reliefs that may be applicable. If you have owned your property since before April 1982 our RICS Registered Valuers can assist with Capital Gains Tax valuations in order to calculate your chargeable gain.
If you need a valuation in order to work out your for Capital Gains Tax liability then contact one of our RICS Registered Valuers on 01684 853400.