5th April 2015 Property Valuations for CGT?

by Readers Question

9:27 AM, 19th February 2021
About 2 weeks ago

5th April 2015 Property Valuations for CGT?

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5th April 2015 Property Valuations for CGT?

I am non-UK resident and need to get a retrospective valuation of a UK house as at 5 April 2015. This is because for CGT purposes, the UK tax law says I can use the value of the house as at 5 April 2015 as my “acquisition cost”, instead of the cost I paid for the house in 2003.

I was about to hire a RICs valuer – they cost from £480 upwards. Then I saw Hometrack does an automated valuation (as at 5 April 2015) for £19.95. I believe Hometrack also provides Zoopla with automated valuations.

Has anyone used Hometrack for their CGT valuations? I am not sure whether their valuations are worth anything and whether the HMRC will accept it? I know Property 118 has a webpage recommending Hometrack, but just wondering what people’s experience of using an automated calculation over a RICs live valuation? I must admit, the Hometrack cost savings look attractive, especially if I do 4 or 5 valuations…

Many thanks

Lional

Comments

Bill

12:06 PM, 20th February 2021
About 2 weeks ago

Just going through this process. I live in Cyprus and have started selling off my UK portfolio. As per the HMRC regs. As a non resident in the UK, I am only liable for capital gains from 2015 after G Osborn added this rule to the list when he started attacking landlords. Also since April 2020 the bill has to be paid within 30 days of completion. The process is of course convoluted. 1st you and your partner if you have one, have to separately open a you gov account each if you do not have one and enter your tax/self assessment details. Of course being HMRC you cannot use this to submit your CGT figures. You need to go to the CGT section, open a separate CGT account. Once done you are given a reference number. This must be passed to your accountant, (who is your rep for self assessment anyway). He must then log in on his agent's account and request to act on your behalf for CGT. He then receives a link from HMRC, e mails it to you, You then click the link, authorise you accountant and then advise him. He then confirms for himself that he is your CGT agent. For partners of course, each have to do this process. I did this last week, got myself sorted but then the HMRC site crashed and I could not complete for my wife so trying again next week. Good luck everyone starting this journey.

Andre Gysler

21:05 PM, 22nd February 2021
About 2 weeks ago

I carry a Swiss passport and have my entire life, I was born in the south of England and have lived in the UK al my life. I have been naturalised and am entitled to hold a British passport too.

I have confirmed I can take up residence as a citizen in Switzerland at any time I choose.

I am potentially looking to sell some rental properties in the Summer / Autumn.

If I switch to being a Swiss National for tax purposes, can I utilise this 2015 ruling? It would reduce my CGT liability by 6 figures if I can.

Olls63

8:56 AM, 23rd February 2021
About 2 weeks ago

You will have to live in Switzerland to become tax resident there. You will then have to refer to the UK-Switzerland DTA. You should also be aware of the Temporary Non-Resident tax provisions which will retrospectively bring you back in to UK CGT on your return to the UK.

Fred Bloggs

9:42 AM, 23rd February 2021
About 2 weeks ago

I would imagine HMRC would use Land Registry figs so perhaps also have a look at them.

Fred Bloggs

9:43 AM, 23rd February 2021
About 2 weeks ago

Reply to the comment left by Olls63 at 23/02/2021 - 08:56
You have to be Non-Resident for 5 years.

Andre Gysler

10:16 AM, 23rd February 2021
About 2 weeks ago

Reply to the comment left by Fred Bloggs at 23/02/2021 - 09:43
To use the 2015 property values? I know there will be cgt to pay in the uk. It is purely a question that fir that given tax year, if I am a Swiss resident and Swiss resident for tax purposes, can I utilise the 2015 property values when calculating the cgt?

Lional Chong

12:28 PM, 23rd February 2021
About 2 weeks ago

Thanks all. I got the Hometrack valuations and some are a bit lower than I thought. So I will get both Hometrack and a RICs valuer. Yes, doubling of costs but if the RICS valuer gives me a slightly higher 2015 value, then I will use that instead and it will more than offset the cost of the surveyor.

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