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For the purposes of Capital Gains Tax, is there an easy way to work out what the value of a house would have been in 1996?
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Different areas have risen in value too at different rates.
My late grandparents paid £100k for a 2 bed bungalow in 1990, we sold it in 2010 for £116k.
Our house would have been worth £40-50k in 1990, it would be worth £250,000 now.
So you really need knowledge of the local area, ask your neighbours they may have a good idea of what houses in your area sold for in 1996.
Ours (or my parents) would have been worth around £60k in 1996.
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I can take a pretty accurate guess at it, I suppose my question should have been is there an official way that HMRC would work it out?
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Is there not a purchase value (or if inherited an IT value) at 1996 to provide direct evidence?
HMRC would presumably ask the Valuation Office Agency to do it. They in turn would use professional expertise and comparable transactions from the time.
Last edited by: Bromptonaut on Fri 16 Mar 12 at 13:56
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>> Is there not a purchase value (or if inherited an IT value) at 1996 to
>> provide direct evidence?
Unfortunately not.
It was inherited.
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>> It was inherited.
So presumably there was a valuation in the estate of the deceased?. That would be the starting point I think
Last edited by: Bromptonaut on Fri 16 Mar 12 at 14:12
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>> >> It was inherited.
>>
>> So presumably there was a valuation in the estate of the deceased?. That would be
>> the starting point I think
Ok, sorry. Perhaps not 'inherited' then. transferred while still alive.
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>> >> >> It was inherited.
>> >>
>> >> So presumably there was a valuation in the estate of the deceased?. That would
>> be
>> >> the starting point I think
>>
>>
>> Ok, sorry. Perhaps not 'inherited' then. transferred while still alive.
>>
Ironically it's probably the other way round. If it was inherited, but the entire estate fell under the IHT nil rate band, then HMRC won't have cared about the valuation at that time.
If it was transferred while the donor was still alive, then the donor should have paid CGT (unless it was his main residence) which would have required a proper valuation.
Anyway, find a surveyor, he will be able to value it in 1996 by valuing it now and then applying magic/science to take the number back 16 years.
Last edited by: Mapmaker on Fri 16 Mar 12 at 16:47
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The OP says he knows how to pretty accurately "guess" the value, and has rephrased his question:
"I can take a pretty accurate guess at it, I suppose my question should have been is there an official way that HMRC would work it out?"
>> Ironically it's probably the other way round. If it was inherited, but the entire estate fell under the IHT nil rate band, then HMRC won't have cared about the valuation at that time. >>
Is there a requirement to log/record values and/or report Potentially Exempt Transfers to HMRC at any time within 7 years after they are made?
Last edited by: John H on Fri 16 Mar 12 at 18:25
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I don't know the answer to your question, but I would guess that the average UK property would now be worth around three times what you paid for it in 1996.
There must be some official way of calculating this, though.
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Could try this, courtesy of Nationwide BS.
www.nationwide.co.uk/hpi/Default.asp?calculate=true
If not, ask a local estate agent but one who looks older than 18 and can't play joint the dots on his face!
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Try this Lloyds Banking Group calculator. tinyurl.com/73t5vgn
Last edited by: L'escargot on Fri 16 Mar 12 at 14:15
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TMWNN's link is reasonably accurate for my region, but L'escargot's link is way off beam.
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Take a look at the Land Registry site, regional average property prices back to 1995 can be found
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From HMRC website
"Checking the market value
HM Revenue & Customs (HMRC) can check your valuation, to help you complete your Self Assessment tax return. To request this complete form CG34 Post Transaction Valuation Check after you've disposed of the property. Form CG34 contains the address you should send it to.
Please allow at least two months for HMRC to check the valuation."
www.hmrc.gov.uk/cgt/property/calc-cgt.htm#3
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I wouldn't trust the tax gatherers to value anything on which they can raise tax!
Last edited by: VxFan on Sat 17 Mar 12 at 00:41
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Well since they are going to decide on whether to accept the accuracy or otherwise of your valuation there is little choice is there Roger?
You make the best stab you can at valuation erring on the high side. You submit the form with your valuation and HMCR will either agree with your valuation or tell you what they believe to be the value they will accept.
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House value as at 1996 - Fenlander
