In the event of you selling your London home, a tax called capital gains tax may apply, which is usually calculated on the sum of the profit made from the sale. In some special situations, a professional market valuation is needed, done by a licensed RICS registered valuer in London.
Typically, capital gains are calculated as the difference between what you paid for an asset (including costs) and how much you sold it for (after costs). However, in the following circumstances you may have to submit a market valuation to HMRC or the district valuer:
The responsibility of calculating and paying capital gains tax can be a daunting one. Our panel of London RICS valuation surveyors guarantee timely and accurate valuations, meaning that, when it comes to calculating the tax owed on the disposal of a buy-to-let property or the sale of an inherited dwelling, you will be professionally advised.
You can get a professional capital gain tax valuation which might lower your tax bill by many thousands pounds, along with the proof needed to fight or appeal if you want to.
If you make a financial gain by selling or disposing of an asset, you need to pay capital gains tax (CGT) on your gain, rather than on the amount you sold it for. So if you bought a London flat in 2000 for £200,000 and sold it in 2020 for £500,000, you’d pay the tax on your £300,000 gain.
The cost is dependent on the proceeds of the deal and any relevant income tax ramifications. If you are in a higher tax rate band, the capital gains tax can amount to 28% for residential properties and 20% for other assets.
If a loss is borne from the sale, you may nevertheless still need to pay tax if your total taxable gains for that year exceeded any tax-free allowance.
By obtaining a Capital Gains Tax valuation from a RICS registered valuer you can:
