Undertaking a valuation for Capital Gains Tax purposes in Leicestershire

Location

Project summary

• The landowner was a Trust who had sold their land (with residential planning permission) to a housebuilder in 2019.
• There were 11 beneficiaries of the Trust who all inherited their share at different dates from 1989 – 2014.
• In order to calculate the Capital Gains Tax due, Fisher German were instructed by the Trust to provide values of the land on the dates on which each beneficiary inherited their share. This required a valuation on the following dates: July 1989, February 1997, August 1999, December 2011, May 2013, February 2014, October 2014.

Solution

• The work involved a valuation of agricultural land in 1989 to a more detailed appraisal and valuation of development land in 2014 as well as a number of valuations at dates in between which incorporated a thorough assessment of ‘hope value’.
• Fisher German’s specialist planning team completed a Planning Policy Review outlining the amendments to Planning Policy over the years and how this affected the possibility of development on the land in question.
• This enabled the Valuation team to assess the ‘hope value’ attributable to the land at the various dates.
• Reports were completed and issued to the Trust and their accountant for submission to HMRC.

Benefits

• Planning Policy Review undertaken by Fisher German’s planning team allowed a thorough and detailed analysis of the ‘hope value’ at each Valuation date.
• Detailed Valuation Report issued to Trust.