What Land and Property Owners Need to Consider for HMRC Valuation Acceptance
01/11/2023
When choosing Mather Jamie as your strategic land adviser and property agent, you gain access to comprehensive assistance in optimising the value of your land and property assets.
In June 2023, David Cooney joined Mather Jamie as a Commercial Valuation Surveyor, bringing extensive experience from working in valuation teams across financial institutions, a multinational professional services firm, and the public sector as a District Valuer.
Working as a District Valuer within the Valuation Office Agency (VOA), a government body providing impartial property valuation and professional advice in the public sector, has given him a unique insight into what land and property owners must consider when seeking HMRC approval for their tax declarations.
Mather Jamie is able to advise on the land and property aspects, but as we are not accountants or tax advisers, we usually work in partnership with our client’s other professional advisers such as tax specialists, wealth management advisers and accounting experts. To provide the best valuation advice on their property assets.
We asked him to consider his experience on ‘both sides of the fence’ to outline what land and property owners can do to ensure HMRC accept a valuation.
Types of Tax in the UK to Consider
Before delving into the intricacies, let's outline the types of taxes individuals and companies in the UK may need to address:
Personal Tax:
- Income Tax
- Capital Gains Tax
- Inheritance Tax
Corporation Tax:
- Income Tax
- Capital Gains Tax
- Capital Allowances
- Transfer Taxes
- VAT
Honesty as the Best Policy
In the eyes of the HMRC, when it comes to land, property valuations, and tax, honesty reigns supreme. Given the complexity of these matters, seeking specialised advice and strategic planning is advisable.
A strategic approach which considers land or property value, tax reliefs and timing ensures a thorough assessment of liabilities, potential tax relief benefits, and the ability to plan decisions about land and property meticulously.
The goal is to maximise their value, pay the appropriate amount of tax, and consider any ongoing liabilities affecting future generations or company owners.
Key Considerations
When engaging in tax planning, both business and personal, the following factors must be taken into account:
- Forward Planning: Disposals and Transfers
- Ownership Clarification
- Ownership Types: Personal, Company, Shares, Offshore
- Liabilities: No Services, Contamination, Rights of Way, Overage Issues
- Tax Years: Timings, Ownership Values Pre-31 March 1982, Property Values 1 April 2019
- Carrying on a Business
- Allowances: Types of Business, Ownership on Transfers
- Planning Uses: Development Potential
- Special Purchasers and Treatment
- VAT on Property
Submitting information in the correct format and providing the necessary details will expedite the HMRC transaction process and ensure compliance with their guidelines. Agents submitting returns should be capable of presenting supporting evidence for any claims made in the right format.
Summary
Land and property valuation, coupled with tax planning, can be a complex undertaking. Many of our clients seek specialist advice from Mather Jamie and tax planning experts to navigate these intricacies effectively.
If you require further assistance with a land or property valuation, please don't hesitate to contact us.