Retrospective Valuation for CGT

alphason

I'm a non resident landlord and if I sell the property (the only property I own) that I once lived in, then since 2015 CGT is now chargeable, before there was no CGT. Since this law change non resident landlords are able to base gains on the market value on 6 April 2015 when the law changed.

I don't need it at the moment I am just thinking ahead.

So how to get this market value, HMRC are very vague when I spoke to them, they don't insist on a formal valuation or any evidence but of course I wouldn't want it to be rejected and really would like to know to help me work out what CGT may be due.

I have some data of my own, I have an estate agents valuation dated June 2015 (not a formal paid for valuation but the agent knows the property and its condition) and my neighbours adjoining property also sold a year earlier in June 2014.
The agent gave a valuation range that is 6-10% more than what my neighbours property sold for a year earlier.

Could I use this information for a valuation myself? HMRC says I don't have to submit a formal valuation or any evidence; they only contact back if they (VOA) don't agree. I read elsewhere that if the value is within 10-15% of their estimate they generally accept it.

(not real values just an example)
June 2014: 200K - neighbours property sold
June 2015: + 6-10% 212-220K - agents valuation
April 2015: I was thinking I might be safe if I added 10-15% to June 2014 (which is a very comparable sold price), so giving a valuation of 220-230.

Obviously, I want this to be as high as I can get away with, but realistic so HMRC will not challenge it, so maybe 220 is better as its the higher range of the agents valuation or is 230 reasonable (??).

Failing this can anyone recommend where to get a reasonably priced valuation?
I have seen some recommend Hometrack valuation for 19.99, but it has limitations and I'm not sure it carries any more weight than my own research. A desktop retrospective valuation from a RICS surveyor is the next step and I've read you can get them for around 100, but I've not seen that price anywhere.

- Thanks.

FreeBear

Look at sold prices for similar properties in your area. The data can be found at the Land Registry and places like Rightmove & Zoopla. Estate agent "valuations" are typically the price they would market the property at rather than the value it actually achieves.

Sold prices also gives you solid evidence to back up what you think the house is worth should HMRC dispute the numbers.

silvercar

Happy to be corrected, but I thought you also have the option of calculating the gain based on your purchase price and doing a linear calculation on how much of that gain was post April 2015. So if you sold in April 2027 and had bought in April 2019, two thirds of the gain would be post April 2015 so you could pay CGT based on two thirds of the gain since purchase.

alphason

@FreeBear Yes that pretty much what I was doing, an identical property (with a smaller plot/garden) sold in June 2014 so a year earlier is the nearest real sale data I have, 2015 was quite hot for property in this area so I was thinking I might get away with adding 10-15% to that sold price to get my valuation, I read HMRC generally accept a figure within 10-15% of their own valuation (the agents valuation would have added 6-10% to that sold price).

@silvercar Yes there's a choice of rebasing to market value in 2015 to calculation gain, or time apportionment where you pay gains only on the % proportion of ownership since 2015, or you pay on gains for the whole period of ownership. That's how I understand it, method 1 should be the best in my case.