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Property Valuations for Capital Gains Tax Purposes

Sell your London property, and you could stand to make a handsome profit. But don’t forget that you may be liable to pay tax on the gains from your home’s sale.

Your accountant can simplify the process of calculating your tax obligations accurately, provided they have a current market valuation for your home from a RICS Registered Valuer.

At Novello Chartered Surveyors, we use our in-depth knowledge of London’s property market, years of experience and the strict guidelines set out by RICS to produce accurate valuations promptly. We can streamline the process of calculating your capital gains tax obligations while helping you save time, money and effort.

Whether you’re trading your home, gifting it to a loved one or selling your inherited property, we can help you. We commit to being the most affordable, convenient, efficient and trustworthy surveyors in London.

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1Type of valuation:

How do I know if capital gains tax applies to me?

You’re legally obligated to pay capital gains tax on any property you ‘dispose of,’ provided The gains you make from the sale of your property play a significant role in determining its value has increased. The amount in tax you’ll pay is determined on the profits or gains your capital gains tax obligations. But other factors, such as your taxable income and you make from the sale of your property, not its current market value. So, if you purchase entitled tax reliefs, can also affect the final figure. a home for £300,000 and sell it for £500,000, you’ll only pay tax on the profit of £200,000.

‘Disposing of’ can mean:

  • Selling your property
  • Gifting it to another person
  • Trading your home for a different asset
  • Earning compensation (from insurance payouts, for example)

How much capital gains tax will I pay?

The gains you make from the sale of your property play a significant role in determining your capital gains tax obligations. But other factors, such as your taxable income and entitled tax reliefs, can also affect the final figure.

Higher rate taxpayers generally pay 28% tax on the gains from the sale of residential properties. Even if you sell your home at a loss, you may be liable to pay capital gains tax if your totable annual gains exceeds the current tax-free allowance.

Confused by anything we’ve said so far? Call us, and we’ll gladly clear things up.

Why do I need a market valuation to calculate my tax obligations?

Sometimes, working out your capital gains tax is as simple as calculating your gains from the sale of your property. Before you sell your home, you’ll undoubtedly want a valuation to find out how much profit you can expect to make. You may also require a market valuation if any of the following scenarios apply to you:

  • Homes sold under market value to benefit the buyer

    In this situation, your tax obligations are based on the property’s value when it was sold

  • Gifted assets

    This is another situation where your tax obligations are based on the market value of the property when it was gifted.

  • Properties purchase before 1982

    Your capital gains tax obligations will be based on the asset’s value on March 31 1982.

  • Inherited assets

    Your capital gains tax obligations are determined by the market value of the asset on the date of the benefactor’s passing.

The benefits of capital gains tax valuations for London properties

  • Homes sold under market value to benefit the buyer

    In this situation, your tax obligations are based on the property’s value when it was sold

  • Gifted assets

    This is another situation where your tax obligations are based on the market value of the property when it was gifted.

  • Properties purchase before 1982

    Your capital gains tax obligations will be based on the asset’s value on March 31 1982.

  • Inherited assets

    Your capital gains tax obligations are determined by the market value of the asset on the date of the benefactor’s passing.

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Contact Novello for more information on capital gains tax

Our capital gains tax valuations are available from as little as a few hundred pounds. You can use them to reduce your tax obligations, speed up legal processes, prevent disputes and more.

If you want to learn more about our impartial valuations or how our RICS Registered Valuers can help you, we hope to hear from you. Contact us via live chat, phone or email today.