Retrospective Valuation

Hi all

So moved out of my PPR 1.5 years ago (it became an IP) however didn’t complete a valuation at the time of moving out. The accountant says I need to have one in the case of potential future CGT event on this property. I don’t intend to sell at all or or any time soon but you never know.

Does anyone have any experience with obtaining retrospective valuations? Would valuation companies be able to do this based on comparable sales alone? Any tips welcome.

Many thanks

 

Is the property an investment? If so, get a depreciation report. This should be able to address all of your accountant's concerns (not just the value of the property when you moved out).

 

Thanks Peter, got that already and already in play against rental income.

The point was around having a valuation set for the time it stopped being my home, to be used as a starting point for calculation CGT if I end up selling this say 10 years into the future.

So that the CGT has a ‘base’ to be calculated from.

Any experience with trying to get a legit val 1.5 years after the fact?

 

Valuers can make a valuation as of at a past date. It is very common and nothing to be worried about.
As the property first became income producing then the cost base would be reset to market value. To reduce CGT on any eventual sale you would want the valuation to be as high as possible.

 

You'd need to employ a valuer directly. In my job I order valuations every day, but only only at the current market value for the property.

Valuers have access to current and historical data, it shouldn't be hard for them to figure it out at a specific point in time. It will take more effort on their part though, so you're going to pay for a full valuation.

Make sure the valuer knows the purpose of the job so they can make the appropriate comments in their report. They'll also be more likely to give a high valuation in your favour if it's indexed to a particular point in time.

 

They do it all the time. Let then know its for tax purposes and you will be good to go.

 

Great, thank you Terry, Mike and Peter

 

I have just requested a quote for a retrospective valuation. They have asked for the date, down to the day I want the valuation for, I didn't realise it would be that specific, would this be fine if its the first day on the original lease?
I think technically it should be the day it was made available for rent or when I moved out, which may have been a couple weeks before lease date but can't remember exactly.

 

s118-192 says date first used to produce income

I wouldn't worry too much though as if you get the dates wrong by a month its unlikely to change the value.

 

Thanks Terry.
I will take that as the first day on the original lease.