Property Valuations for Accountants

An estate agent's market appraisal is a non regulated opinion produced to win a sales instruction. It has no professional standing and HMRC will not accept it as evidence of value for tax purposes. A RICS Red Book valuation is a regulated, professional report produced by a qualified RICS Registered Valuer in accordance with mandatory professional standards. It carries the weight of a regulated profession, is backed by professional indemnity insurance and is the recognised standard for tax valuations. If HMRC challenges the figure, the agent's appraisal offers no defence, whereas a Red Book valuation provides a complete and reasoned justification.

Yes, retrospective valuations are a significant part of our work for accountants. Whether you need a valuation as at the date a client acquired a property, as at a date of death for probate, or as at the date of disposal for a CGT calculation, we research market conditions, comparable transactions and relevant property price indices for the specific date. The valuation is prepared to the same Red Book standard as a current market valuation, with the same level of rigour and evidential support.

For straightforward residential properties, we aim to complete the inspection within 3 to 5 working days of instruction and deliver the written report within 5 working days of inspection. Where a filing deadline is approaching, we can often accommodate an expedited schedule. Let us know the deadline when you instruct us and we will confirm what is achievable. Complex or unusual properties may require a longer lead time, and we will advise on this at the quotation stage.

We need the full property address, the purpose of the valuation, for example CGT, IHT, SDLT or connected party transfer, the relevant valuation date, whether current or historical, and any relevant context about the property or the transaction. That is usually enough for us to confirm the fee and turnaround time. If the property is unusual, a brief description of the type, size and age helps us price accurately.

The treatment depends on the purpose of the valuation. For CGT purposes, the valuation fee is generally an allowable cost that can be deducted in calculating the gain, along with legal fees, estate agent fees and improvement costs. For IHT purposes on death estates, the fee is typically deductible as an administration expense. We always recommend you confirm the treatment based on your client's specific circumstances, but in most scenarios the cost is recoverable through the tax position it supports.

We are not tax advisers and will not enter into direct correspondence with HMRC on your client's behalf about their tax liability. However, our reports are designed to withstand scrutiny, and we are available to discuss the valuation methodology, comparable evidence and reasoning with you or your client should HMRC raise questions. In practice, a well prepared Red Book valuation rarely attracts a challenge, and when it does, the report itself usually answers the query without the need for further discussion.