Bulleys were instructed to carry out a valuation as at 31st March 1982 for Capital Gains Tax purposes on behalf of a private client who had historically occupied industrial premises in Wolverhampton but who had recently sold the premises.
Capital Gains Tax arises as a result of a sale of property and the Inland Revenue broadly calculate the gain on the difference between the value of the property as at 31st March 1982 and the value of the property when it is sold.
The property was sold by our client in 2004 and comprised 3 distinct buildings totalling 90,450 sq.ft. on a site area of 5.73 acres and included 1.43 acres of undeveloped potential expansion land.
Valuations undertaken for Capital Gains Tax present particular difficulties for valuers, not least of which is obtaining comparable evidence of comparable transactions close to 31st March 1982.
Additional problems when undertaking such valuations are that in many cases the client has either historically sold their property or that the property has ultimately been redeveloped for some alternative use and an inspection is not possible.
Fortunately, in this case the subject property was well known to Bulleys, the Agency Department having sold the property in 2004. Furthermore, due to our extensive local knowledge and comparable records, we were able to provide an accurate valuation of the property ensuring our client’s Capital Gains Tax liability was kept to an absolute minimum.