Inheritance Tax Valuations
At the time of death, a tax is paid on the assets (investments, property & possessions) that you owe. It is known as Inheritance Tax.
An accurate market value of property is necessary at the date of death for overall estate and individual property in accordance with Inheritance Tax Act 1984.
We liaise with the District Valuer/Inland Revenue to ensure that the probate process is completed accurately and efficiently at this emotional time.
Inheritance Tax is usually paid on an estate when somebody passes away. It’s also sometimes payable on trusts or gifts made during someone’s lifetime. Most estates don’t have to pay Inheritance Tax because they’re valued at less than the threshold (£325,000 in 2016/17). The tax is payable at 40 per cent on the amount over this threshold or a lower rate percentage rate if more than 10% of estate is donated to charity.
It pays to have an accurate property valuation to show if you owe inheritance tax. Undervalue your presidential property or estate and you’ll not only face an additional tax bill but also be fined up to 100% of the extra tax due.
An HM Revenue and Customs crackdown in the middle of the recession raised an additional £70m in tax after carrying out more than 9,300 investigations. Households shown to be undervaluing owed an average £24,600 in extra inheritance tax – plus possible fines if they had not shown “reasonable care” in their tax submissions. And that was when the crunch was only just starting to hurt – in 2010.
Capital Gains Tax Valuations
The Inland Revenue/District Valuer will require a formal valuation of a property following disposal, especially if it is not the principal residence.
The purpose of the valuation is to calculate Capital Gains Tax in accordance with Taxation of Chargeable Gains Tax 1992. The increase in property value is subject to the tax, unless it is owner occupied.
Other circumstances where Capital Gains tax is levied is where the occupier exercises right to buy or where there is a transfer of shared ownership, as the market value is established for stamp duty and Non Domicile assessments.
Aston James Associates, an as RICS Regulated Valuer, has the ability to provide the District Valuer with a professional valuation report in an acceptable format.