Capital Gains Tax Valuation

Capital Gains is a tax that becomes payable when you sell the chargeable asset and make a profit from it. The chargeable asset can be the property or land that’s not your main residence. Capital gains tax will be determined based on your personal income and the profit you make from the sale of an asset.

You pay capital gains on any property you sell with exception to the main residence. The property can be:

• Investment property
• Second home
• Land
• Business premises
• Inherited properties

Your capital gains tax is calculated from the gain you make minus expenses which you incurred to sell the property. For instance, if you bought the property for £200,000 and sold for £400,000 your initial taxable gain would be £200,000.

When Capital Gains Tax Valuation Is Needed?

You need to submit obtain capital gains tax valuation for your tax liability assessment when your circumstances meet any of the conditions below:

Gifted property

• You need to obtain the valuation as at the date the property was gifted.

Inherited Property

• If you intend to sell the property you received as part of the Will you need to obtain a valuation at the date of the deceased’s passing.

Property purchased prior 31st March 1982

• If you bought property before 31st March 1982 and sold after, you will need to obtain retrospective capital gains valuation to work out the gain.

Non-resident and selling the property

• From 5th April 2015, most properties sold by non-residents will be liable for capital gains tax. You will need to obtain valuation if you sell property bought prior 5th of April 2015.