Client sold a property recently and purchased the 4 bedroom property in 1970. Its been let since 1992.
We need to completed the CGT return but I realised HMRC takes three months to come back with a valuation
Any other ways or methods to value a property as at 31st March 1982 ? We had checked with estate agent but they could not help. My client is relunctant to pay for a surveyor for a valuation.
Replies (7)
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While not entirely accurate, you could use the Nationwide property index to work backwards to guess an approximate value.
Alternatively there may be data for similar properties in the locality available at Land Registry, but the searches will cost a few quid.
Ultimately the client has to use their best judgement and be prepared for a possible challenge from HMRC at some point.
Given the massive increase in value since 1982 it probably isn't that important as most of the sale price will be gain.
There is data available from Land Registry but I am not sure how useful /detailed it would be. There really is no substitute for accurate information for the specific locality, which is what HMRC will use (from the Valuation Office). A RICS surveyor is likely to have access to similar information and given the potential cost of getting it wrong, the fees paid are likely to be worthwhile.
Taking national figures, it is interesting that you comment on the massive rises since 1982. In actual fact, the average price of property in 1970 was just below £4k. By 1982 it had gone up more than 5 fold to about £21k. Over the next 40 years the price has gone up about 10 fold to around £220k. So the rise between 70 and 82 was at a proportionately higher level but the numbers were somewhat smaller (hence your comment is quite correct).
Given the gain involved, tell the client that a couple of hundred quid is worth spending to reduce the chance of an HMRC query down the line.
I haven't looked myself but I've been told the Valuation Agency Archives for 1982 should provide the information.