Non-Domicile Tax Valuation
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What is Non-Domicile Tax Valuation?
Non-domiciles who wish to sell or rent out a Canterbury house – or any property in the UK – are subject to different regulations. Depending on your circumstances, you may not be required to pay some taxes. The earnings from the sale of your property may be subject to taxation in your home country. The only way to determine which apply to you, how much you must pay, and how to lawfully sell or otherwise dispose of your Canterbury property is to obtain a non-domicile tax assessment.
An accurate market value is necessary if you wish to sell your Canterbury house while you reside abroad. Additionally, you must pay taxes on the sale’s earnings, and if you want to lease, you may require a rental income assessment.
Our panel of RICS accredited valuers can accurately assess your property, inform you of your tax responsibilities, and assist you in avoiding potentially expensive conflicts.
The Benefits of a Property Valuation Report
Several factors can influence the price of an RICS valuation report, including property type, location, and purpose. For standard residential properties, an RICS valuation is generally priced at a minimum £700. For larger and more valuable residential properties, the cost can go up to £1,500 or more. Valuing commercial and specialised properties will be more expensive as the valuing surveyor will require extra time and expertise and therefore will charge more.
Different Types of Valuation: when are RICS valuations necessary?
A proper and detailed valuation of a property should be done in the following instances:
- Buying/selling
- Mortgage
- Transferring assets into SIPP
- Capital Gains Tax
- Probate or transfer of estate (Inheritance tax)
- Right to Buy
- Help to Buy
- Shared ownership
- Divorce (Matrimonial Valuation Report)
- Rent reviews or negotiations
- Reinstatement Cost (Rebuild)
- Shared Ownership
- Tax planning
- Dispute resolution (e.g. mediation)
Property Price Factors
RICS appraisers factor in the following property elements to assess a house’s worth:
- dimensions and size
- age
- state of repair
- building method and materials
- count of sleeping rooms
- site and local zoning
- permits for proposed use
- alterations (e.g. new rooms)
- comparables
- type of tenure
Is an RICS valuation something you require?
There are many occasions when people find it essential to obtain one. When applying for a mortgage, for instance, a lender almost always insists on a mortgage valuation. This is performed by a CIOB, RPSA or RICS surveyor who is instructed to confirm that the property is worth enough to secure the loan in question.
Moreover, if you are looking to buy or sell a property, a valuation by your surveyor will provide you with assurance. You will know that the decisions you are making are based on the true and accurate market value of that property. This fact alone can help you immensely when it comes time to negotiate, whether you are dealing directly with a seller or working through an estate agent. You will have a solid foundation upon which to build your negotiations.
Why is a Valuation necessary?
There are many reasons that make a valuation necessary. First and foremost, the RICS valuation report, based on international standards, is one of the most precise methods of valuing something.
Adhering to rules and guidelines that are as stringent as those demanded of any financial institution ensures objectivity and impartiality, meaning that the surveyor is not unduly influenced.
Reduced Risk: an RICS report allows for early identification of potential property problems and is a good basis for understanding what sorts of issues might crop up in the future.
Valuations are also key to legal disputes, tax planning, and compliance. They ensure objectivity in disputes, fair treatment in legal cases, and adherence to regulations.
Valuations aren’t just for legal purposes, of course. They are also crucial for insurance. Unless a business knows the true value of its assets, it can not realistically insure them.
Investment: an investment strategy helps an investor make decisions about their investment portfolio. Valuations would help in this decision-making process.
Sustainability: efficiency in construction, environmentally friendly features, and products that are sustainable are part of numerous RICS evaluations today.
Global Acknowledgment: CIOB and RICS enjoy a global standing, which brings a level of respect and acceptance to its property appraisal reports when they are used for international business dealings.
Valuation for Divorce (Matrimonial)
A Divorce Settlement Valuation is a service that will enable you to split them appropriately in the divorce settlement. It guarantees that no matter what the terms of the settlement are, the equity is divided proportionately.
Benefits of Non-Domicile Tax Valuation
You can accomplish the following using non-resident tax valuations:
- Obtain an accurate property value: a new, independent market appraisal can help you determine the appropriate asking price for your house.
- Reduce your tax bill: determine whether exemptions and reliefs apply to you in order to lower your tax payment and save money.
- Prevent legal issues: remain compliant by having our team of RICS accredited valuers provide you with an accurate assessment of your property and a clear picture of your tax liability.
- Sell your property without returning home: unless it is absolutely necessary, you do not need to travel back to the UK to sell or lease your Canterbury property.
If I'm not a resident, do I still have to pay property taxes?
When renting or selling a Canterbury property, non-domiciles from the UK used to not have to worry about tax laws, but this all changed with the April 2015 budget statement. These days, you’ll probably be required to pay taxes on any income that passes through the UK, including when you transfer money from overseas into a UK bank account.
If you have previously used the remittance basis, generated a profit, and your taxable income piles up, be ready to get a bill for capital gains tax. All prospective homebuyers should be aware that the tax regulations in the UK may be quite complicated. However, our panel of RICS accredited valuers can assist you by providing a reliable report to your legal advisers, allowing you to focus on what you do best—make informed business choices.
