With all valuations for accounting purposes it is highly recommended if not essential that you seek advice from professionals covering the various disciplines relating to property: accountant, solicitors and surveyors.
Probate / Inheritance Tax Valuations
Organising a Probate / inheritance Tax valuation can be one of the hardest valuations to instruct a surveyor to undertake.
At a time when loss can be all encompassing; and the amount of jobs to do when the person who might have helped you organise those jobs is no longer present; is overwhelming; or the thought of getting a special someone’s affairs in order; when your own life is lacking order without that someone; you need a person to turn to who can help.
We work with accountants and solicitors, executors and trustees to produce valuations with minimal fuss and bother.
Sometimes those dealing with an estate will be advised to just get a minimum of three estate agents to produce a valuation (which more often than not, instead turns out to be an appraisal of the figure at which they would market a property) and which does not really fulfil the needs of the district valuer who will then critically appraise all valuations to argue over the inheritance tax that should be paid.
By instructing us as your chartered surveyor to undertake a professional valuation and confirm our professional opinion as to the value of a property at the date of passing you have an opinion to which the District valuer will give greater weight.
We also liaise with your accountants and/or solicitors where possible, and if necessary can negotiate with the district valuer on the question of the value to be applied to a property.
Inheritance Tax Planning
It is also not uncommon when working with a proactive accountant, solicitor or financial advisor that they will advise you on forward planning.
In those instances we are often approached not after an unfortunate event but ahead of time when a party may wish to transfer a property into a trust or gift a property to a family member, to benefit from a tax saving or advantage within the parameters of what is permitted by the law.
In those circumstances it is important to have a professional valuation from a member of the Royal Institution of Chartered Surveyors to confirm the value of the property in the open market at the date of transfer.
Capital Gains Tax Valuations
Capital Gains tax valuation are normally required when selling a property that is not your home, a buy to let or investment property, or an inherited property as well as land and business premises.
Most commonly for UK residents these valuations are required if:
1. You have owned a property since before 1st April 1982;
2. You inherited a property and have not sold it within a year or inheritance, or don’t know the inheritance value;
3. Where a property was a gift; or
4. A property was sold for less than it was worth to help the buyer.
Your accountant will advise you on how to calculate the capital gain and tax liability but will most often recommend that you get a chartered surveyor who is a specialist in the area to value the property.
If you are a non resident selling a residential UK property then the date from which your capital gain is valued (at the date this text was typed) is the 5th April 2015.
This new situation where Capital gains tax is payable by non UK residents has led to many overseas investors seeking a “5th April 2015” valuation to hold on file for as and when they do come to sell the property in the future.
Valuations for Accounting Purposes
Whilst the examples above are the most common, there may be a number of other reasons that your accountant suggests it would be beneficial to have undertaken a professional valuation of the open market value of a property.
In those circumstances it is equally as important that you have a suitably qualified professional valuer and chartered surveyor advise you.
It is important that the Surveyor you chose knows their area and is able to liaise with both you and your accountant to ensure what they produce for you fulfils your needs.