It has been announced that from 6th April 2015 all UK non-residents disposing of UK residential property are liable to pay Capital Gains Tax (CGT) based on the profit attributable to periods after 6th April 2015.

Should you wish to sell your property after this date, you will need to have some evidence of the value of the property as at 6th April 2015. This can be achieved in two ways. You can either take the higher of the market value at 6th April 2015, or the pro-rata value at that date based on the whole period of ownership. However you cannot know which option is best without having taken a valuation as at 6th April 2015.

It will be the responsibility of the seller to evidence to HM Revenue & Customs (HMRC) the base value as at 6th April 2015.

As a result, we are advising all of our clients to obtain a valuation now. The most recognised of these is a Royal Institute of Chartered Surveyors (RICS) valuation, to help protect your interest and prevent unnecessary tax claims against you in the future. The alternative is to source other informal valuations from local estate agents, though these are more likely to be open to dispute with HMRC.

As a consequence of this, we are able to introduce you to Complete RPI who can provide the unique service of an independent RICS valuation for your UK properties.

This should help safeguard our clients’ best interests including time, money and potential future disputes.

The approximate fee structure according to property value will be as follows:

Up to £500,000                             £750 plus VAT
£500,000 to £750,000                £850 plus VAT
£750,000 to £1 million                £975 plus VAT
£1 million to £1.5 million            £1,050 plus VAT
£1.5 million to £2 million           £1,150 plus VAT
£2 million +                                   £1,250 plus VAT

If you would like to discuss this further, or talk to someone face to face, please CLICK HERE.

This entry was posted on Monday, 23rd February 2015 at 10:58 am and is filed under Capital Gains Tax, Inheritance Tax, News, Tax. You can follow any responses to this entry through the RSS 2.0 feed.

Tags: 2015, CGT, Financial, gains, HMRC, inheritance, Planning, property, Tax

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