How to get a lower-end property valuation?

OrangeFrog4321

Hi, for capital gains tax purposes I need to get my property valued. I have booked an estate agent valuation, stating I am considering selling (which I am), but mainly need it for CGT. Essentially I would benefit from as low a valuation as possible - how do I achieve this? My current plan is to ask for a realistic quick sale price, and to say that I want something realistic (estate agents are notorious for inflated valuations, and properties nowadays are often selling under asking/last-minute discounts post-survey) - would I be better off just letting him know what I'm after? Thanks

flaneurs_lobster

Mention that your gaff used to be a cannabis factory?

Fill the front garden with broken fridges and stained mattresses?

Smalltownhypocrite

Are you actually selling or just wanting a value? 

If your selling then why, whats your end goal?

It seems odd to not want money you could have, yes you might pay CGT maybe but it shouldn't take all the increase so you would still benefit from higher sale price. 

If you want to be a motivated seller because your moving or something then that usually fast and cheaper than the market to entice quick interest but thats more about speed than the money.

Or are you doing something like trying to get a low value for probate? because then you will get whacked with CGT when you sell later.

MyRealNameToo

OrangeFrog4321 said:

Hi, for capital gains tax purposes I need to get my property valued. I have booked an estate agent valuation, stating I am considering selling (which I am), but mainly need it for CGT. Essentially I would benefit from as low a valuation as possible - how do I achieve this? My current plan is to ask for a realistic quick sale price, and to say that I want something realistic (estate agents are notorious for inflated valuations, and properties nowadays are often selling under asking/last-minute discounts post-survey) - would I be better off just letting him know what I'm after? Thanks

Dont understand why your asking for it but taking it at face value, just mention all the problems with the property and the neighbours when the estate agent is looking around. 

daveyjp

Unless the estate agent is a certified qualified RICS valuer who knows they are undertaking a valuation for CGT purposes you won't get a CGT valuation from an estate agent.  

Mark_d

OrangeFrog4321 said:

Hi, for capital gains tax purposes I need to get my property valued. I have booked an estate agent valuation, stating I am considering selling (which I am), but mainly need it for CGT. Essentially I would benefit from as low a valuation as possible - how do I achieve this? My current plan is to ask for a realistic quick sale price, and to say that I want something realistic (estate agents are notorious for inflated valuations, and properties nowadays are often selling under asking/last-minute discounts post-survey) - would I be better off just letting him know what I'm after? Thanks

Capital Gains Tax is calculated when the property is sold, based on the actual figures.  Estate Agents numbers are typically just plucked out of the air.  They not an accurate assessment of the property value.

Mr.Generous

If CGT is 20% then for every £1000 you reduce from the price you save yourself £200 in tax! Winner!!

Although of course you miss out on the extra £800 you could have kept. 

OrangeFrog4321

To add, it's because we have gifted the property within the family - CGT is due on the previous period of ownership, but not going forward (as it is now primary residence)

Brie

Hopefully the property wasn't gifted to get around IHT as I don't think that will work.

sheramber

Be aware HMRC may check your valuation and increase it if they think it is too low. 

poseidon1

OrangeFrog4321 said:

To add, it's because we have gifted the property within the family - CGT is due on the previous period of ownership, but not going forward (as it is now primary residence)

Pay for a RICS red book valuation and get it ASAP. Estate agents are not qualified to provide valuations for CGT purposes or defend a valuation if challenged by HMRC.

CGT payable on any gain deemed to have been made by the person making the gift is due 60 days after the  effective date of gift.

Presumably a memorandum of gift was prepared which states the effective date for tax purposes?

Assuming you made the gift and therefore  have to pay the tax in due course, you will also need to submit a  tax return to HMRC for the same transaction by the self assessment deadline relevant to the tax year the gift was made. That return will determine if  CGT at the correct tax rate was paid, depending on your income tax threshold for the year.