Unfair Capital Gains Tax Bill

DibbeeG

babyblade41 wrote: »

I think you have mistook mortgage valuation for a surveyors valuation.

You will have to pay for that so well worth the cost. As in probate values an RICS is one that most government bodies recognise

Aaah, thank you, yes I've been getting mixed up with a mortgage valuation and a full survey. I never got a full survey done. But we'll try doing one now.

DibbeeG

01afraser4 wrote: »

As davidmcn above has mentioned, your father should submit an appeal. This needs to be submitted within 30 days of any decision being made unless there is reasonable excuse for not doing so.

At that point he can ask them to consider any additional information that may be relevant. If they remain unmoved on their position, you can apply to the tribunal.

Have HMRC given reasons as to why they disbelieve the retrospective valuation figure?

The only thing they have said is that the valuations we have submitted are too low compared to their own research they have done.

00ec25

DibbeeG wrote: »

Aaah, thank you, yes I've been getting mixed up with a mortgage valuation and a full survey. I never got a full survey done. But we'll try doing one now.

no, you still have not understood

a mortgage valuation is utterly irrelevant for CGT purposes. The lender is only interested in whether the loan sum is covered by the "value", not is the value realistic reference the selling price

a "full" survey will tell you if the property is going to fall down, it will not tell you a value for CGT purposes

as mentioned in post #3 you needed to have submitted the tax return backed up by property valuation undertaken by a RICS qualified valuer (it is a specialist field for a RICS surveyor). Your valuer should have been engaged on the understanding he will need to represent you at a VOA Tribunal where the probity of the valuation will be examined and a a binding decision reached.

Getting a valuer to come on board now on your side will be very expensive and with no idea of success.

bottom line is, you cut corners doing the tax return and now you are paying for it.

The Valuation Office Agency is the HMRC department responsible for telling HMRC what figures to use when HMRC says how much tax you have to pay. Challenging the VOA's valuations requires compelling counter evidence best coming from a person with exemplary professional credibility.

if you decide to formally appeal, you will need to do so at the Upper Tribunal (Lands Chamber). They are not like other tribunals who welcome DIY, they are a legal body expecting to deal with professionals
https://www.gov.uk/courts-tribunals/upper-tribunal-lands-chamber

the VOA process is explained here:
http://cti.voa.gov.uk/corporate/publications/Manuals/CapitalGainsTaxManual/sect6/g-cgt-man-s6-pt6.html




had you submitted a CGT 34 (too late now) you could have had forewarning of your problems.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/774171/CG34.pdf

BoGoF

Has your father made any payment? He should have at least paid what he thought was due based on his own figures.

Thrugelmir

DibbeeG wrote: »

But when I rang Nationwide to ask them to send me that valuation report from 2 years ago, the value on it was £250k (they took the lowest out of the sell price and the market value).

For mortgage purposes it would be the purchase price. The lender is only concerned with the property providing adequate security for the money advanced.

Tom99

DibbeeG wrote: »

The only thing they have said is that the valuations we have submitted are too low compared to their own research they have done.

Is it the surveyor within the Valuation Office you have been having these discussions with or the HMRC tax dept? If it is not the Valuation Office can you ask whoever you are dealing with to refer the matter to them.

Sounds like you need to employ your own RICS surveyor to value the property as at the date of sale and negotiate that value for you with the Valuation Office.