Author: Thomas Awoleye

What Are the New Rules for Capital Gains Tax Exemption?

Posted on by Thomas Awoleye

Capital Gains Tax (CGT) rules have changed significantly over the last few years, leaving many homeowners and property investors wondering whether they still qualify for exemptions and reliefs.

The good news is that Private Residence Relief (PRR) remains the main exemption for homeowners. However, changes to Capital Gains Tax rates, annual allowances, and reliefs mean it’s more important than ever to understand the current rules in force before selling a property.

In this guide, we’ll explain the new Capital Gains Tax rules in force as of right now, who qualifies for exemptions, and what you can do to reduce your Capital Gains Tax liability.

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What Are the New Capital Gains Tax Rules?

Several important Capital Gains Tax changes have been introduced in recent years.

RuleCurrent Position (2026/27 Tax Year)
Annual Capital Gains Tax Allowance£3,000 for individuals
Residential Property CGT Rates18% (basic rate) and 24% (higher rate)
Business Asset Disposal Relief Rate18%
Final Period Exemption9 months
Private Residence ReliefStill available where qualifying conditions are met

These changes have reduced the amount many taxpayers can realise tax-free and increased the tax payable on certain disposals.

What Makes You Exempt From Paying Capital Gains Tax?

The most common exemption is Private Residence Relief (PRR).

You will usually qualify if:

  • The property has been your only or main residence throughout your ownership
  • You have not used part of the property exclusively for business purposes
  • The total grounds are normally no larger than the permitted area
  • The property was not purchased primarily to make a profit through resale

If you qualify for full Private Residence Relief, you will usually pay no Capital Gains Tax when selling your home.

What Are the Current Capital Gains Tax Rates?

From the 6th April 2026, the main Capital Gains Tax rates are:

TaxpayerCapital Gains Tax Rate
Basic Rate Taxpayer18%*
Higher or Additional Rate Taxpayer24%

*Basic-rate taxpayers may pay a combination of rates depending on their taxable income and the size of their gain.

What Is the Current Capital Gains Tax Exemption Amount?

Every individual currently has an Annual Exempt Amount of £3,000.

This means that only gains above this threshold (after deducting allowable losses and reliefs) are potentially taxable. The allowance has been significantly reduced from previous years, making professional tax planning increasingly more important.

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How Can You Reduce Your Capital Gains Tax?

Depending on your circumstances, you may be able to reduce your Capital Gains Tax liability by:

  • Claiming Private Residence Relief
  • Using your Annual Exempt Amount
  • Offsetting capital losses
  • Claiming allowable buying and selling costs
  • Claiming qualifying improvement costs
  • Obtaining a professional Capital Gains Tax valuation where appropriate

An accurate valuation is particularly important when calculating gains on property, as HMRC may require evidence to support your figures.

Find out more about reducing your Capital Gains Tax in our guide: How Long Do I Have to Live In a Property to Avoid Capital Gains Tax?

Book Your Capital Gains Tax Valuation Today

At Crest Surveyors, we provide independent RICS-certified Capital Gains Tax valuations that are designed to support your tax position with accurate, defensible market evidence.

Whether you’re selling a former home, investment property, or mixed-use asset, our valuations help ensure your figures are fully supported and HMRC-compliant.

Speak to our team to book a professional Capital Gains Tax Valuation today.

New Capital Gains Tax Rule FAQs

Can I Still Claim the 9-Month Capital Gains Tax Exemption?

Yes. The final 9 months of ownership still qualify for Private Residence Relief if the property has been your main residence at some point during ownership.

This rule replaced the older 18-month and 36-month extensions and is now the standard final exemption period for most homeowners.

Read our guide: What Is the Capital Gains Tax 9 Month Rule?

What Was the 36 Month Capital Gains Tax Rule?

The 36-month rule was a former Private Residence Relief extension that allowed a longer tax-free period after moving out of a home.

It has now been reduced and replaced by the 9-month final exemption period in most cases. However, it is still widely referenced online, which can cause confusion for homeowners reviewing older guidance.

Read our blog, What Was the 36 Month Rule for Capital Gains Tax? for more information.

Is There a 6-Year Capital Gains Tax Rule In the UK?

There is no general “6-year rule” in UK Capital Gains Tax law for residential property. Confusion often arises from specific relief scenarios and historical interpretations. However, the UK system does not provide a blanket 6-year exemption.

Who Qualifies For 0% Capital Gains Tax?

You may pay 0% Capital Gains Tax if your gain is fully covered by Private Residence Relief, falls within your £3,000 Annual Exempt Amount, or is reduced to nil after deducting allowable losses and reliefs. Certain transfers, such as gifts to a spouse or civil partner, are also exempt from Capital Gains Tax.

What Is the 90% Rule For Capital Gains Exemption?

There is no general “90% rule” for Capital Gains Tax exemption in the UK. The term is sometimes used in relation to specific tax reliefs or specialist business tax rules, but it does not apply to the sale of residential property. Most homeowners should instead consider whether they qualify for Private Residence Relief and other HMRC-approved exemptions.

What Threshold Do You Have to Pay Capital Gains Tax?

For the 2026/27 tax year, you’ll generally only pay Capital Gains Tax if your taxable gains exceed the Annual Exempt Amount of £3,000 after deducting any allowable losses and reliefs. The amount of tax you pay will then depend on your income, the type of asset you’ve sold, and any reliefs you’re entitled to claim.

How Long Do I Have to Live In a Property to Avoid Capital Gains Tax?

Posted on by Thomas Awoleye

If you’re wondering how long you have to live in a property to avoid Capital Gains Tax, the short answer is that there is no minimum amount of time set by HMRC.

Instead, what matters is whether the property genuinely qualifies as your only or main residence. If it does, you may be eligible for Private Residence Relief (PRR) for the time you spent living at the property, which can reduce or even eliminate the Capital Gains Tax (CGT) due when you sell.

In this guide, we’ll explain how the rules work, what HMRC looks for, and the circumstances where you may still have to pay Capital Gains Tax.

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Is There a Minimum Time You Must Live in a Property to Avoid CGT?

No. UK tax legislation does not specify that you must live in a property for six months, one year, two years, or any other fixed period before qualifying for Private Residence Relief.

Instead, HMRC considers whether the property was genuinely your main residence. Factors HMRC may consider include:

  • Where you spent most of your time
  • Where you were registered to vote
  • Your correspondence address
  • Where your family lived
  • Utility bills and council tax records
  • Whether your occupation of the property was intended to be permanent

Simply moving into a property for a short period before selling it does not automatically qualify you for relief if HMRC believes the occupation was temporary or purely to reduce tax.

What Is Private Residence Relief?

Private Residence Relief is the main Capital Gains Tax relief available when selling your home.

If the property has been your only or main residence throughout your ownership, you will usually have no Capital Gains Tax to pay. If you’ve lived there for only part of the ownership period, relief is normally calculated proportionately.

HMRC also allows the final 9 months of ownership to qualify for relief in most circumstances, even if you no longer live in the property.

You can learn more in our guide: What Is the Capital Gains Tax 9 Month Rule?

Example Scenarios

Scenario 1 – Main Residence Throughout

You buy a house and live there for 10 years.

In this case, you’ll usually pay no Capital Gains Tax, because the property qualifies for full Private Residence Relief.

Scenario 2 – Moving Out Before Selling

You live in a property for eight years before moving into a new home. You then rent out the original property for one year before selling.

The period that you occupied the property as your main residence may qualify for relief, along with the final nine months of ownership. The remaining rental period may be liable for Capital Gains Tax.

Scenario 3 – Buy to Let Property

You buy a property purely as an investment and rent it from day one.

Because it was never your main residence, Private Residence Relief is generally unavailable, meaning Capital Gains Tax may be payable when you sell.

How Can You Reduce or Avoid Capital Gains Tax?

Although you can’t always avoid CGT entirely, there are several legitimate ways to reduce the amount you pay.

These include:

  • Claiming Private Residence Relief where eligible
  • Using your Annual Exempt Amount
  • Deducting allowable buying and selling costs
  • Claiming the cost of qualifying improvements
  • Using any available capital losses
  • Obtaining an accurate professional valuation where required

Many homeowners overlook the importance of a professional valuation when calculating Capital Gains Tax.

At Crest Surveyors, we provide independent Capital Gains Tax Valuations prepared by experienced RICS surveyors.

“A professionally prepared valuation provides strong evidence to support your Capital Gains Tax calculation and can be invaluable if HMRC requests further information.”

Thomas Awoleye MSc Eng, MRICS, C.Build E MCABE

What Happened to the 36 Month Rule?

If you’ve researched this topic, you may also have come across the old 36 month rule.

Before April 2014, some homeowners could claim relief for the final 36 months of ownership. This was later reduced to 18 months and then to the current nine-month period.

Read our full guide: What Was the 36 Month Rule for Capital Gains Tax?

Capital Gains Tax FAQs

Do I Have to Pay Capital Gains Tax Immediately?

Capital Gains Tax on UK residential property normally needs to be reported and paid within the deadline set by HMRC after completion of the sale. Always check the current reporting deadlines, as these can change.

How Does HMRC Know if You Need to Pay Capital Gains Tax?

HMRC receives information from HM Land Registry, conveyancers and other sources. Taxpayers are also legally required to report taxable gains where applicable.

What is the 9-Month Rule?

The final nine months of owning a property usually qualify for Private Residence Relief, even if you were no longer living there before the sale.

Read our full guide: What is the Capital Gains Tax Nine Month Rule?

Do I Pay Tax if I Sell My House and Don’t Buy Another?

Buying another property does not determine whether you pay Capital Gains Tax. Instead, it depends on whether the property qualifies for Private Residence Relief and whether a taxable gain arises.

Do I Pay 18% or 28% Capital Gains Tax?

Capital Gains Tax rates depend on your taxable income and the tax rules in force at the time you sell. Higher-rate taxpayers generally pay a higher rate than basic-rate taxpayers. Check the latest HMRC guidance for current rates.

What Can You Offset Against Capital Gains Tax?

You can usually deduct purchase costs, legal fees, Stamp Duty Land Tax, estate agent fees, qualifying improvement costs, and allowable capital losses when calculating your Capital Gains Tax.

What Is the 6 Year Rule for Capital Gains Tax In the UK?

Posted on by Thomas Awoleye

If you’ve been searching for the 6 year capital gains tax rule in the UK, you may be surprised to learn that there is no official 6 year rule in the UK.

The phrase is often confused with Australian tax law, where property owners can continue treating a former home as their main residence for Capital Gains Tax purposes for up to six years after moving out and renting it. The Australian Taxation Office provides detailed guidance on the 6-year rule.

However, the term can also be confused with certain HMRC 6-year rules, such as HMRC’s ability to investigate tax returns and assess underpaid tax going back up to six years in cases involving careless errors.

In the UK, different rules apply to Capital Gains Tax on residential property. Instead of a 6-year exemption, homeowners may qualify for Private Residence Relief (PRR) and benefit from the final 9-month exemption period.

This guide explains where the 6-year rule comes from, why it doesn’t apply in the UK, and which Capital Gains Tax rules you should know instead.

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Is There a 6 Year Capital Gains Tax Rule In the UK?

No. There is currently no 6-year capital gains tax rule in the UK.

The confusion usually arises because:

  • Australian property owners can access a “6-year rule” under certain circumstances.
  • Older UK CGT rules, such as the former 36-month rule, are sometimes mistaken for a 6-year rule.
  • Some taxpayers confuse it with HMRC’s 6-year assessment and investigation time limits for certain tax matters.

What Is the Australian 6-Year Capital Gains Tax Rule?

In Australia, homeowners may be able to continue treating a former main residence as their primary residence for up to six years after moving out if the property is generating income, such as through renting. This is commonly referred to as the “6-year rule”.

How this works:

ScenarioAustralian 6-Year Rule
Move out and rent the propertyMay remain CGT exempt for up to 6 years
Move back into the propertyThe 6-year period can potentially reset
Buy another main residenceAdditional rules apply

Because this is an Australian tax provision, it has no direct equivalent in UK CGT legislation. For more information on the Australian 6-year rule, refer to the Australian Tax Office.

What Is the 6-Year Rule for HMRC?

When people refer to the 6-year rule in relation to HMRC, they are usually talking about HMRC’s time limits for investigating tax returns and issuing assessments where errors have occurred.

In many cases, HMRC can look back:

CircumstanceTypical HMRC Time Limit
Innocent errorUp to 4 years
Careless errorUp to 6 years
Deliberate behaviourUp to 20 years

It is important to note that this HMRC 6-year rule relates to tax compliance and investigations. It is not a Capital Gains Tax relief and should not be confused with UK Private Residence Relief.

Find out more about the HMRC 6-year rule on the HMRC site.

What Is the UK Equivalent of the 6-Year Rule For CGT?

The closest equivalent that the UK has to the Australian 6-year rule is Private Residence Relief (PRR).

Private Residence Relief can reduce or eliminate Capital Gains Tax on a property that has been your only or main residence. When calculating relief, HMRC generally allows:

  • The period you lived in the property as your main residence.
  • The final 9 months of ownership, even if you were no longer living there.

For example:

Ownership PeriodTreatment
Lived in the property for 8 yearsQualifies for PRR
Rented out for 2 yearsMay be partly taxable
Final 9 months before saleUsually exempt under PRR

Unlike Australia’s 6-year rule, the UK does not automatically exempt a property simply because it was previously your main residence.

For more information on the current Capital Gains Tax 9-month rule in the UK, read our guide: What Is the Capital Gains Tax 9-Month Rule?

When Do You Need a Capital Gains Tax Valuation?

If Capital Gains Tax may be payable, obtaining an accurate valuation is essential.

A professional valuation may be required when:

  • Selling a former main residence
  • Disposing of an inherited property
  • Transferring ownership between family members
  • Calculating Capital Gains Tax liabilities
  • Responding to HMRC enquiries

At Crest Surveyors, we provide independent Capital Gains Tax Valuations prepared by experienced RICS surveyors. Visit our Capital Gains Tax Valuations page or get in touch with our team for more information.

“One of the most common mistakes that we see is property owners relying on estimates rather than professional valuations. A well-supported valuation provides vital evidence if HMRC ever questions your calculations.”

  • Thomas Awoleye MSc Eng, MRICS, C.Build E MCABE

Capital Gains Tax 6-Year Rule FAQs

What Is the 9-Month Rule For Capital Gains Tax?

The 9-month rule allows homeowners to claim Private Residence Relief for the final 9 months they own a property, even if they no longer live there. This can reduce the amount of Capital Gains Tax payable when the property is sold.

Find out more in our blog: What Is the 9-Month Rule For Capital Gains Tax?

What Is the 12-Month Rule For Capital Gains Tax?

There is no specific UK “12-month rule” for residential property Capital Gains Tax. However, some assets may qualify for different treatment depending on how long they are owned, and other countries have separate 12-month CGT rules.

Who Qualifies for 0% Capital Gains Tax?

Individuals whose total taxable gains fall within their available annual exemptions and tax bands may effectively pay 0% Capital Gains Tax. Full Private Residence Relief can also eliminate CGT on the sale of a main residence in qualifying circumstances.

What Is the CGT Lifetime Cap For 2026?

Business Asset Disposal Relief (formerly Entrepreneurs’ Relief) has a lifetime limit of £1 million of qualifying gains. Tax legislation can change, so professional advice should be sought for current limits and eligibility.

What Is the 36 Month Rule For Capital Gains Tax?

The 36-month rule was a historic Private Residence Relief provision that allowed certain homeowners to receive relief on the final 36 months of ownership. It has since been reduced and replaced by the current 9-month exemption period.
Find out more in our blog: What Was the 36-Month Rule For Capital Gains Tax?

How Much Are House Valuations? + Cost Calculator!

Posted on by Thomas Awoleye

Whether you’re selling, buying, divorcing, dealing with probate, or simply planning your next move, understanding how much house valuations cost in the UK is essential. In this guide, we explain typical valuation fees across regions, why prices differ, how costs have changed over time, and even give you a House Valuation Cost Calculator to get an instant quote!

House valuations in the UK typically cost between £250 and £900+, depending on the valuation type, property value, and location. London and the South East are more expensive due to higher property values and market complexity, while other regions tend to cost less.

Below, we break down house valuation costs by valuation type, UK region, and property value, explain why prices vary, and show how to get an instant quote using our valuation calculator.

What Is a House Valuation?

A house valuation is a professional assessment of a property’s market value at a specific point in time, carried out by a RICS-accredited surveyor. Unlike a basic estate agent’s estimate, a qualified valuation provides an objective and defensible market value figure that can be used for legal, financial, and transactional purposes.

A house valuation might be required for:

Find out more about what’s included in our formal valuation reports on our Property Valuations page.

Typical House Valuation Costs in The UK

Valuation fees depend on several factors, including property value, location, and purpose of the valuation. According to RICS cost guidance for 2025, independent valuations generally range from £250 to £1,500+, depending on depth and complexity.

Valuation TypeTypical UK Cost RangeWhat It’s Used For
RICS Property Valuation£300 – £600Independent market valuations for buying, selling, or legal purposes
Capital Gains Tax Valuation£350 – £800Calculating CGT when selling a second home or investment property
Insurance Reinstatement Cost Assessment£250 – £500Determining rebuild cost for insurance purposes
Probate Valuation£300 – £800Establishing property value at the date of death
Inheritance Tax Valuation£350 – £900+HMRC-compliant valuations for IHT calculations
Shared Ownership / Help to Buy Valuation£200 – £400Required for staircasing, resale, or scheme compliance
Lease Extension Valuation£600 – £1,500+Calculating the premium payable for extending a lease

*Note: Properties in London and the South East often fall into the higher end of these price ranges due to increased property values, market complexity, and professional liability considerations.

House Valuation Costs by Region

Valuation fees vary across the UK based on demand, property prices, and surveyor operating costs. For example, areas with higher house prices often require more time and market expertise, leading to higher fees.

RegionEstimated Valuation CostNotes
London£400 – £900+The highest costs are due to premium property values
South East£350 – £750Close to London pricing
East of England£320 – £700Moderate costs
Midlands£300 – £650Around the national average
North West / North East£250 – £550Lower property value regions
Wales / Scotland / NI£240 – £520Generally lower costs

Why London & South East Valuations Cost More

London and the South East of England typically command a higher valuation fee because of:

  • Higher property values and insurance liabilities
  • Greater diversity of property types
  • Higher cost of living and business expenses
  • More complex local markets

As a result, a standard valuation in central or inner London can cost 30 – 40% above the national average.

House Valuation Costs by Property Value

Costs also scale with property value, with larger and more expensive homes taking longer to inspect and report on.

Property ValueEstimated Valuation Cost
Up to £150,000£250 – £350
£150,000 – £300,000£300 – £450
£300,000 – £500,000£350 – £600
£500,000 – £1,000,000£500 – £900
Over £1,000,000£900+

How Valuation Costs Have Changed Over Time

House prices and professional fees have both increased over recent years. With average UK house prices hitting record levels, valuers have seen higher liability and operational costs, which incrementally affect the fees.

YearTypical Independent Valuation Cost (UK Average)
2018£250 – £400
2021£280 – £450
2023£300 – £500
2025£350 – £600+

Our House Valuation Cost Calculator: Get an Instant Quote

Want an exact price for your house valuation in London and the South East of England? Use our house valuation cost calculator below to get an instant quote based on your property type.

Who Pays for House Valuations?

Valuation costs are typically paid for by the party requiring the valuation:

  • Homeowners/sellers usually pay for valuations for legal, tax, or sale purposes
  • Buyers may pay for an independent valuation to confirm the value
  • Mortgage lenders pay for their own lender valuation as part of mortgage costs (not a substitute for independent valuations)

Formal valuations must be performed by a RICS surveyor to ensure legal acceptability.

Why Choose Crest Surveyors?

At Crest Surveyors, our RICS-accredited team provides professional, reliable valuations that are tailored to your needs, including:

Explore our services on our Property Valuations page, or get in touch for an exact quote.

How Much Does a Probate Valuation Cost​?

Posted on by Thomas Awoleye

When someone passes away, one of the first steps in managing their estate will be determining how much their property is worth. This process, known as probate valuation, is essential for accurate inheritance tax, estate distribution, and accurate record keeping.

But how much does a probate valuation cost?

A probate valuation in the UK typically costs between £300 and £800, depending on the property’s size, location, and value. In London and the South East, prices can reach £900+ due to higher property values and complexity. Fees are usually paid from the estate’s funds.

Below, we’ll break down the average probate valuation costs for the UK and explain the regional price difference and how much you’ll expect to pay in your region. You can even get an instant quote from our online probate valuation cost calculator!

Article Contents

What Is a Probate Valuation?

A probate valuation is an official assessment of a property’s market value at the date of death. It must be conducted by a qualified professional, such as a RICS-registered surveyor, to ensure accuracy and compliance with HMRC standards.

These are required for estates worth over £325,000, but can be a smart choice for properties that fall below this range to ensure that you’re paying the correct tax. Find out more about this here.

At Crest Surveyors, our probate valuations are carried out by experienced RICS chartered surveyors who understand both market fluctuations and the sensitivity required in these situations.

“A professional valuation gives families and executors peace of mind, ensuring the estate is handled fairly and transparently.”

  • Thomas Awoleye MSc Eng, MRICS, C.Build E MCABE

Average Probate Valuation Costs

The cost of a probate valuation will depend on the property’s location, type, and value. Across the UK, fees will usually range from £300 to £800, but can be much higher in London or with high-value estates.

Property ValueAverage Probate Valuation Cost (UK)
Up to £250,000£300 – £400
£250,000 – £500,000£400 – £600
£500,000 – £1 million£600 – £850
Over £1 millionFrom £850+ (bespoke quotation)

Regional Probate Valuation Costs

Property prices, and therefore valuation costs, can vary significantly across the UK. Here’s a rough guide of what you should expect to pay in each area:

RegionAverage Probate Valuation CostNotes
London£450 – £900+Higher due to property values and complexity
South East£400 – £800Often close to London pricing
East of England£350 – £700Cambridge, Essex, and Hertfordshire areas
Midlands£300 – £600Average national rates
North West / North East£250 – £500Lower cost of living and property prices
Scotland / Wales£300 – £600Moderate variation depending on the urban area

“Probate valuations in London and the South East tend to be slightly higher than national averages, simply because property values and the level of detail they require are much greater.”

  • Thomas Awoleye, Crest Surveyors
A top-down image of a usual suburban neighborhood.

Probate Valuation Cost Calculator

Get an instant estimate with no personal details required!

Use our probate valuation cost calculator to receive an instant quote for our London and the Home Counties probate valuations in under a minute. Simply enter a few questions about your house value and size to get an estimate!

Who Pays for a Probate Valuation?

In most cases, the executor or administrator of the estate arranges and pays for the valuation using estate funds.

If the property is jointly owned, or if a beneficiary requests an independent valuation, costs can sometimes be shared or reimbursed through the estate later in the process.

Key Points:

  • The valuation is considered an estate expense, not a personal one.
  • Fees are usually paid before probate is granted, and later recovered from the estate.
  • For complex estates, multiple valuations may be required (e.g. if HMRC challenges the figure).

For more information on multiple valuations, read our guide on how many house valuations you need for probate.

Why Choose Crest Surveyors for Probate Valuations?

  • RICS-Accredited Experts – Our valuations meet HMRC and RICS Red Book standards.
  • Local Market Insight – We understand regional property trends, especially across London, Cambridge, and the South East.
  • Discreet, Professional Service – We work sensitively during what can be a difficult time.
  • Fast Turnaround – Reports are typically delivered within 3-5 working days.

“Accuracy matters most in probate. An undervalued or overvalued property can lead to delays, disputes, or unnecessary tax liabilities.”

  • Thomas Awoleye, Crest Surveyors

For more information on the impact of incorrect probate valuations, see: What happens if a house is sold for more than probate value?

Get a Probate Valuation Quote Today

If you need an accurate, RICS-approved probate valuation, Crest Surveyors can help. We provide transparent pricing, professional guidance, and support at every stage of the probate process.

Contact us today or use our probate valuation cost calculator for a quick estimate.

How Much Does a Building Survey Cost?

Posted on by Thomas Awoleye

Getting a Homebuyers Survey or Building Survey is an essential part of the home-buying process – especially if you’re buying a period property, older home, or a home with a non-standard construction. But how much should you expect to pay for a building survey?

 

Depending on the type of survey, location, house value, complexity, and other factors, building surveys typically cost anywhere from £600 – £1,500 across the UK. In London, average prices range from £1,000 – £1,500+ to reflect the increased house prices and costs of the location.


In this guide, we’ll break down the average price of a Homebuyers Survey or Building Survey by national average, region, and house value to ensure that you’re paying the right price for your property. If you’re in London, you can also use our handy cost calculator to get a quote for your property!

Article Contents

What Is a Building Survey?

A Building Survey (RICS Level 3 Survey) is the most in-depth RICS property survey available. It assesses the full condition of the building and ensures that there are no structural issues or underlying problems with the home, beyond what a HomeBuyers Survey (RICS Level 2 Survey) would assess.

The survey also provides photographic evidence, detailed findings, and tailored recommendations to help property buyers make informed decisions about the home that they’re planning to purchase.

Thomas Awoleye, Chartered Surveyor of Crest Surveyors, explains that:

“A proper building survey arms buyers with the knowledge they need to renegotiate or walk away, before any hidden issues become an expensive regret. The Level 3 Building Survey is the best option available for older or non-standard homes.”

A Building Survey is recommended for any:

  • Older (50+ years) or historic homes
  • Listed buildings
  • Properties in poor condition, or if you have concerns about defects
  • Properties with non-standard construction or extensively altered buildings
  • Homes valued at over £1 million or with complex layouts

For more information, read our guide What is looked at in a full structural survey?

What Is a HomeBuyers Survey?

A Homebuyer Survey (or RICS Level 2 Survey) is the standard property inspection for most modern or conventional homes that don’t have any of the issues listed above. It highlights any visible issues in the property, such as damp, structural movement, or repairs required. 

If you have a standard home, this is likely the correct choice for you. However, if you’re concerned about any deep-seated issues, it could be worth getting a building survey for your peace of mind.

National Average Building Survey Costs

Survey prices depend on the type of survey that you choose. Here’s a comparison of the national average for each of the three main RICS surveys. It’s also worth noting that location, house value, and other factors will play a large part in determining the cost of your survey, which we’ll discuss later in the guide.

Survey Type

National Average Cost

Level 1 – Condition Report

£250 – £400

Level 2 – HomeBuyer Report

£400 – £800

Level 3 – Building Survey

£600 – £1,500+

Building Survey Cost By Property Value

Property value plays a huge part in determining the cost of a Building Survey. This is because a higher-value home will be larger and more complex than a lower-value property. It will also carry a greater financial risk if done incorrectly, requiring more time and detail.

Property Value

National Average – Building Survey

Up to £250,000

£600 – £800

£250,000 – £500,000

£750 – £1,000

£500,000 – £750,000

£900 – £1,200

£750,000 – £1 million

£1,000 – £1,400

Over £1 million

£1,400 – £2,000+

Average Building Survey Cost Per Region

Another factor when considering the price of a survey is the location. While a smaller town or less popular region could work out cheaper, London and the South East of England are the most expensive areas due to property values and operational costs.

Region

Avg Building Survey Cost

London

£1,000 – £1,500+

South East

£850 – £1,300

South West

£800 – £1,200

Midlands

£700 – £1,000

North West

£600 – £900

North East

£550 – £850

Wales

£600 – £950

Scotland

£600 – £1,000

“Surveying in London requires more time due to extended travel times, traffic, structural diversity, and higher house prices compared to other regions”, says Thomas Awoleye.

A top-down image of a usual suburban neighborhood.

Our Building Survey Prices

At Crest Surveyors, we provide professional, RICS-accredited Building Surveys in London and the Home Counties. Our prices provide good value for money for our region while maintaining the high quality and expert advice that’s expected from any Chartered Surveyors. You can use our pricing calculator below to get a quote for your property instantly, with no personal details taken.

We also offer:

Is a Building Survey Worth It?

A Building Survey is absolutely worth the cost if the property you’re looking at falls under any of the previously mentioned categories. Even if it doesn’t, it can often be worth it for extra peace of mind or if you’re concerned about any specific issues.

For a fraction of the property price, you can ensure that structural issues, defects, and costly potential repair costs aren’t an issue – or be able to renegotiate if some are found.

On average, Building Surveys are actually money-saving because you could be saving yourself much more than the fee.

RICS Building Surveys in London

At Crest Surveyors, we specialise in London property surveys and valuations. We can bring you deep insight into the condition of your property with a jargon-free report that’s broken down into easy-to-understand steps.

From Victorian terraces in Hackney to new builds in Croydon, we understand that materials and construction methods can vary greatly across boroughs – and we have the expertise to survey each one individually.

Our team is led by Thomas Awoleye, MSc Eng, MRICS, C.Build E MCABE, who has over 24 years of industry experience.

“In London, no two buildings are the same. Our surveys are tailored, not templated, and always reflect the true complexity of each and every property.”

Get a quote today using our Survey Cost Calculator, or get in touch with a member of our team to discuss your requirements.

What Is a RICS Valuation? Everything You Need to Know

Posted on by Thomas Awoleye

When buying or selling property, especially when a mortgage is involved, understanding its true value is essential. This is often where a RICS valuation is required as an accurate, independent assessment of a property’s worth.

A RICS valuation is a professional assessment of a property’s value. It’s conducted by a RICS-registered surveyor and used for mortgages, financial planning or property transactions to ensure sound investment decisions.

But what exactly does a RICS valuation involve? How long does it take? And how much does it cost? If your valuation expires, what happens next? Read on to discover everything you need to know about RICS valuations, whether you need a survey, what to expect from the process, and when a valuation is legally required.

A row of suburban houses

What Is a RICS Valuation?

A RICS valuation is a detailed and independent assessment of a property’s value. RICS-registered surveyors will conduct the valuation in accordance with RICS Red Book guidelines. These guidelines cover things such as the property’s size, condition and location. 

Importantly, there is no conflict of interest because RICS surveyors don’t earn commission from their valuation. As such, a RICS valuation is required by lenders prior to mortgage approval. They can also be required to determine the appropriate level of insurance for a property.

When Do You Need a RICS Valuation?

The most common reason for a RICS valuation is that it’s required by a mortgage provider. Independent assessments of value are used by banks to make sound investment decisions. But this isn’t the only case you might need a RICS valuation. Scenarios where you might need the opinion of a surveyor include:

  • Inheritance Tax Valuations – HMRC requires a professional valuation to assess an estate’s total worth for inheritance tax purposes.
  • Capital Gains Tax Purposes – When selling property that has increased in value, a RICS valuation may be needed to calculate capital gains tax owed.
  • Divorce and Legal Settlements – A RICS valuation is often needed to divide property assets fairly. 
  • Business Valuations – For businesses that own property, a RICS valuation is required for accounting, auditing or tax purposes.
  • Development and Planning Applications – A RICS valuation can provide a reliable assessment of the property’s worth and future value.
A small cobbled street with bushes and a row of terraced houses.

What Does a RICS Valuation Involve?

A RICS valuation involves a thorough assessment of a property’s value, as judged according to a RICS surveyor’s extensive training and experience. As such, it covers several key areas:

Construction and Condition

A property’s physical condition is a big part of its valuation. After all, a property needing major repairs is worth a lot less to prospective buyers. Surveyors look at how well the property was built and maintained. Modern, energy-saving features could also result in a higher valuation.

Location & Amenities

When it comes to buying a property, location is (nearly) everything. This is often a case of how close it is to local schools and public transportation. General trends in an area’s desirability can also be a factor in the valuation—if more people want to live in an area, the demand for housing increases.

Comparable Sales Data

Surveyors will also use comparative sales data to arrive at their valuation. This aspect of valuation involves checking the prices of recently sold homes to judge where a property falls within the overall market.

Economic Conditions

The broader economic climate plays a key role in RICS valuations. If conditions are unfavourable—including high interest rates, inflation or economic uncertainty—valuations decline with demand. Conversely, during periods of growth and high consumer confidence, there is often an increased demand for property. A RICS valuation captures these market trends to provide an accurate assessment of value.

Environmental Factors

The surrounding environment also plays a crucial role in determining property value. When providing a RICS valuation, surveyors will weigh up zoning regulations, green spaces, infrastructure, as well as general environmental risks—such as flooding—to reach their conclusion.

How Long Does a RICS Property Valuation Take?

For most residential properties, a RICS valuation takes less than a couple of hours to complete, depending on the size of the property. This process involves a thorough inspection of the house and its immediate surroundings. The resulting report will be delivered within a few working days.

Some buyers may opt for a more detailed RICS valuation, in which case it will take longer to conduct and deliver. In-depth surveys are typically required for older houses or those built with unconventional materials.

How Much Does a RICS Property Valuation Cost?

A RICS valuation varies according to property type, size, location and the complexity of the valuation. At Crest Chartered Surveyors, our RICS valuation prices start from:

  • £349 for up to a 2-bed property
  • £369 for a 3-bed property
  • £399 for a 4-bed property
  • £449 for a 5-bed property

All prices are inclusive of VAT.

For a more precise estimate, you can always use our house survey cost calculator.

Two people working on a laptop

What Happens if My RICS Valuation Expires?

A RICS property valuation is typically valid for three months from the report’s date. That said, factors like market and property conditions, as well as local regulations, can impact a report’s validity. If your RICS valuation expires before you can complete a transaction, you’ll need a new one. 

In some cases, a new report can be a simple “desktop valuation” that extends the original valuation by another three months. Importantly, a desktop valuation must be issued by the same RICS surveyor, on the company’s headed paper, and provided in a non-editable format.

Get Your Valuation from a RICS-Registered Surveyor

In summary, a RICS valuation is an accurate and detailed assessment of a property’s worth. They help to ensure compliance in a wide variety of financial and legal scenarios. Whether you’re applying for a mortgage, settling a legal matter, or evaluating your tax liability, a RICS surveyor can help you get the valuation you need.

At Crest Chartered Surveyors, we offer a wide range of RICS surveys and valuations in London and the surrounding areas. Our experienced team will help you choose the right survey for your needs before conducting a thorough valuation. Contact us today for expert advice.

If you’re keen to learn more about our services, explore our latest blog posts for insights on property valuations: 

What Was the 36-Month Rule for Capital Gains Tax in the UK?

Posted on by Thomas Awoleye

Anyone selling a property should know that the old 36-month rule has been replaced by a 9-month exemption. This rule was in place to determine the amount of Capital Gains Tax that must be paid at the point of sale or transaction for a house or property within the UK. The 36-month exemption was first reduced to 18 months in 2014 and then to 9 months in April 2020. Today, homeowners can only claim CGT exemption for the final 9 months of ownership before selling.

Read about the new 9-month rule here.

But what was this rule, how was it implemented, and what do you need to know if you are buying and selling the same property within a 3-year window? 

Our RICS-Accredited team here at Crest Surveyors are here to help you dispel any myths around the 36-Month Rule and its implications for Capital Gains Tax. 

The 36-Month Rule for Capital Gains Tax was a UK law that previously determined tax liability on property sales. It allowed sellers to claim CGT exemption for the final 36 months of ownership, even if they had moved out. However, this was reduced to 18 months in 2014 and further to 9 months in 2020, which remains the rule today.

This general law is in place as it prevents short-term transaction benefits concerning taxation. The 36-Month Rule was therefore in place to ensure that taxation is fair for property sales, within a timeframe of 3 years.

Although the 36-Month Rule is still discussed, the current law only provides a 9-month exemption period for CGT.

Learn more about the updated 9-Month Rule here.

Capital Gains Tax Valuations

The 36-Month Rule for Capital Gains Tax in the UK

The 36-Month Rule for Capital Gains Tax was used to ensure fair taxation across properties sold or transferred within 3 years. Since 2014, the Government has made amendments to this time period, however, the term ‘36-Month Rule’ is still very much used in common parlance. As of January 2025, tax exemption from Capital Gains Tax only applies to a 9-month period. 

But first, let’s clarify a few key terms here. For instance, what is Capital Gains Tax at all?

Two people working on a laptop

What is Capital Gains Tax?

Capital Gains Tax is money paid towards the government on the financial gains on capital, in this case, property. So, if you have purchased a property for £100,000, which is now worth £110,000 at the time of sale (or transfer, exchange, or disposal), your capital has gained a value of £10,000. Capital Gains Tax, in this sense, is a tax paid on the difference in the value of your property when you bought it, over the amount that you sold it for. 

CGT is a tax paid on this gain in capital as a set percentage as stipulated by the government. This percentage is based on what capital you are paying the CGT on (in this case property), and the tax status of the individual paying. This is based on income and a number of other factors. If you earn more, you may be more liable to pay a higher percentage of tax on the amount gained across your assets. 

However, a break on this tax is applicable when you sell a property which was your only residence. This is known as Principal Private Residence Relief or PPR Relief. It is also worth noting that each individual has a £6000 tax-free amount, which doesn’t incur a tax. 

You may only be liable for CGT when selling or disposing of a second home or buy-to-let property. As mentioned, if you are selling or otherwise disposing of your only property, you may not be liable at all for CGT and, therefore, exempt from the new 9-Month Rule altogether. 

So, the amount of CGT you might pay is dependent on a few things, which we will explain further. 

View our Capital Gains Tax Services.

The variables that are in play include: 

  • Main Residence Exemption – If the property was your main home, CGT may not apply.
  • Income Tax Band – Basic rate taxpayers (income up to £50,270) pay 18% on property gains, while higher/additional rate taxpayers (income above £50,270) pay 24%.
  • Annual Exemption Allowance – Each person has a tax-free CGT allowance of £6,000 (2023/24).
  • Joint Ownership – Couples who jointly own a property can combine allowances to reduce taxable gains.
  • Private Residence Relief (PPR Relief) – The final 9 months of ownership are CGT-exempt for most homeowners. However, if the owner moved into a care home and did not rent out the property, they may still qualify for an extended 36-month exemption. This rule doesn’t apply for regular sellers, however. 
  • Duration of Ownership – If you owned the property for a long period, only the portion of time it was not your main home is taxable.
  • Property Value & Cost Basis – You can deduct purchase price, legal fees, stamp duty, and capital improvements when calculating your gain.
  • Letting Relief – If you rented out your former main home, you may qualify for up to £40,000 in Letting Relief to reduce CGT.
  • Spouse or Civil Partner Transfers – Transfers between spouses/civil partners are tax-free, allowing you to split the gain for tax efficiency.

Read About the New 9-Month Rule

Was The 36-Month Rule A Tax-Free Window for Sellers?

The 36-Month Rule was an extension of Principal Private Residence (PPR) Relief, which is designed to reduce or eliminate CGT liability for homeowners. This rule did allow sellers to claim full tax exemption for the last 36 months (3 years) of ownership, even if they did not live in the property during this period.

As mentioned, this period has since been reduced to a 9-month exemption period.

Capital Gains Tax Valuations
A toy house with a magnifying glass and floor plans

How Did the CGT 36-Month Rule Work?

If the property was your main residence at any point during your ownership, then the last 36 months of ownership are automatically exempt from CGT.

This exemption applies even if you moved out before selling the property. If you rented out the property after moving out, you may still qualify for partial relief.

Who Benefits from the 36-Month Rule?

Before 2020, the 36-Month Rule helped homeowners who were selling their only home by allowing them to claim tax exemption for up to three years after moving out. However, since April 2020, this period has been reduced to just 9 months. 

Read more about how the 9-Month Rule affects sellers today.

This rule was particularly useful for:

  • Homeowners who move before selling: If you buy a new home but take the time to sell your previous one, you could benefit from CGT relief for three years.
  • Landlords and second-home owners: If you previously lived in a rental property but later let it out, you could still claim part of the exemption.
  • People moving into care homes: If you had to move into long-term care, the 36-month exemption would still apply, helping to reduce CGT liability.

How Do You Value a House for Capital Gains Tax?

To calculate your taxable gain, you must determine:

  • Purchase Price (Original Value): The amount you originally paid for the property.
  • Sale Price (Disposal Value): The amount you sell the property for.
  • Market Value (If Required): Used when selling to a relative, gifting the property, or if the property was inherited.
  • Deductible Costs: Legal fees, stamp duty, and improvements (but not for maintenance).
Capital Gains Tax Valuations

How Much Is Capital Gains Tax on a Second Property?

As mentioned, any Capital Gains Tax is payable for second properties, rather than primary residences or dwellings. Therefore, the tax rate applicable to second homes is set at 24% for higher-rate taxpayers and 18% for basic-rate taxpayers (as of 6th April 2024).

How Long Do You Have To Keep a Property To Avoid Capital Gains Tax in the UK?

You can only avoid Capital Gains Tax if the property that you are selling is your only home. This is known as the Private Residence Relief (PRR). This rule prevents individuals who own just one property from paying tax when selling or disposing of their home.

Your Partner in Understanding Capital Gains Tax

Here at Crest Chartered Surveyors, we understand that getting your Capital Gains Tax right can mean the difference of thousands of pounds in your pocket. Our expert team of RICS-accredited Surveyors can help you with the sale of your property. Located in Holborn, London, we work with many homeowners in the region, including the South East and the Home Counties, to help them progress with the sale or purchase of their property. 

Working with our qualified team will allow you to understand your and your property’s tax status and the allowances to which you may be entitled. 

We understand that selling your property can be confusing, so allow us to provide some clarity. Our team can help you with your Capital Gains Tax by providing you with a detailed assessment of the value of your property at an affordable price.

And aerial image of the Thames River.

Capital Gains Tax 36-Month Rule FAQs

How Long Do You Have to Live in a Property to Avoid Capital Gains Tax in the UK?

There is no fixed time limit to be able to avoid capital gains tax on a property. What HMRC cares about is whether the property was genuinely your only or main home.

  • If it was your main residence for the entire time you owned it, you’ll normally pay no CGT.
  • If it was your main home for only part of the time, you’ll often get partial relief – reduced proportionally.

The key here is quality over quantity. HMRC doesn’t care how long you’ve lived there, only that you actually lived there as your main or only residence.

With the new 9-month rule, the final 9 months of living at the property are always CGT-free, even if you’ve moved out. This means that you have 9 months to sell the property without paying CGT if it isn’t your main residence.

What Is the 6 Year Rule for Capital Gains Tax?

Despite common confusion, there is currently no official 6-year Capital Gains Tax rule in the UK. The phrase is commonly confused with Australian tax law, where homeowners may be able to continue treating a former main residence as their primary residence for CGT purposes for up to six years after moving out and renting it.

The term is also sometimes confused with HMRC’s 6-year time limit for investigating certain tax errors, which is unrelated to Capital Gains Tax relief on property sales.

For more information, read our blog: What Is the 6 Year Rule for Capital Gains Tax?

What Are the New Rules for Capital Gains Tax Exemption?

Currently, if you sell a property that is your main or only residence, you can still qualify for Private Residence Relief (PRR), therefore paying no CGT for the period you lived there.

However, some changes to the rule have been made:

  • The 36-month rule has been reduced multiple times, currently allowing for 9 months CGT-free at the end of ownership.
  • Lettings relief now only applies if you lived in the property at the same time as your tenant (not related to the 6-year rule discussed above)
  • The annual tax-free CGT allowance has taken significant cuts from £6,000 to the current £3,000.
  • You must now report and pay any CGT on UK property sales within 60 days of completion.

What Is the Capital Gains Tax 9-Month Rule?

Posted on by Thomas Awoleye

With so many capital gains tax rules over the years, it can be hard to keep track of what the current laws are and what you’ll need to pay. However, if you’re selling a home, you’ll need to be up to date with the current rules to ensure that you’re not overpaying or receiving fines for getting it wrong.

In this blog, we’ll go through everything you need to know about the 9-month rule to ensure that the process is as smooth as possible.

Key Takeaways

  • Capital gains tax is a tax that you need to pay on any profit that you make when selling your home.
  • You can get exemptions for properties that are your main place of residence.
  • The 9-month rule is an extra exemption that means that you don’t need to pay tax on the last 9 months of property ownership.
  • The 9-month rule came into effect in April 2020, after being reduced from 36 to 18 months in 2014 and then to 9 months in 2020.
  • The 9-month rule benefits a variety of situations, including those who buy a property before managing to sell their existing one.
  • You’ll need a RICS-accredited surveyor to complete a capital gains tax valuation to ensure that you know the accurate value of your property at the time of sale.
Capital Gains Tax Valuations
A metal light switch on a white wall.

What Is Capital Gains Tax?

Capital Gains Tax (CGT) is a tax that you need to pay on the profit that you make when you sell an asset that has increased in value. This asset could be anything from a painting to a house.

For example, if you buy a house for £125,000 and sell it for £200,000, you’d need to pay tax on the £75,000 that you made in profit. It’s worth noting, however, that there is also a Private Residence Relief (PRR) that provides an exemption for any period where the property is your sole residence.

What Is the Capital Gains Tax 9-Month Rule?

When selling your property, there is an exemption period for the last 9-months of ownership, even if you weren’t living at the property over that period. This means that any gains made in value over this period are ignored, and you’ll only have to pay CGT on the gains made before then.

Capital Gains Tax Valuations

When Did the 9-Month Rule Come Into Place?

The 9-month rule came into effect in April 2020. The exemption previously lasted for 36 months, before being reduced to 18 months in 2014 and later 9 months in 2020 – see our blog on the 36-month rule.

The rule has been changed to reduce the unfair advantage that people with second homes could gain over those with a single residence.

A bird house that is designed to look like a house hanging from a tree.

How Does the 9-Month Rule Work?

For periods where you’ve owned a property that isn’t your main residence, you’ll be liable for capital gains tax. The 9-month rule essentially excludes all gains made during the last 9 months of ownership, whether you were living there or not.

For example, let’s say you bought a house in 2010 for £200,000 and it was your main residence until 2015, but then you moved into a new property, renting the original one out. In 2022, you decided to sell the property for £350,000. You would pay CGT based on:

  • 2010 – 2015: During this period, you lived in the house as your main residence. This means that Private Residence Relief (PRR) would apply and you would pay no capital gains tax.
  • 2015 – 2022: The property was rented out for this period, meaning that you’ll need to pay capital gains tax on it. However;
  • Final 9 Months: For the final 9 months, you are still entitled to PRR under the 9-month rule, meaning that you won’t pay CGT during this period.

Overall, you would be liable to pay CGT between moving out of the property in 2015 to 9 months before selling in 2022.

Who Benefits From the 9-Month Rule?

The 9-month rule has a few different use cases that make it beneficial in different scenarios. These can include:

  • Homeowners who move before they’re able to sell: When buying a new home, there is often an overlap between buying a property to move into and selling your old home. This exemption allows for 9 months between buying and selling.
  • Landlords & homeowners with multiple homes: You can claim tax exemption for at least a portion of your ownership period.
  • Those moving into care homes: If you need to move into long-term care, the 9-month rule provides a period where you’re able to sell your old home without paying CGT.
Person signing contract

Who Can Value a House For Capital Gains Tax?

To value your property for capital gains tax, you’ll need an experienced RICS-accredited surveyor. They will be able to value your property based on the value at the time of sale and provide you with an accurate valuation that will be accepted by HRMC. 

If you’re looking for a trusted surveyor for a capital gains tax valuation in the South East of England, look no further than Crest Surveyors. We work with you to provide a detailed valuation that avoids any unnecessary jargon so that you understand every aspect of your property.

Get in touch with a member of our team today to discuss your requirements.

Capital Gains Tax Valuations

What Happens if a House Is Sold for More Than Probate Value?

Posted on by Thomas Awoleye

Dealing with the probate process can be highly stressful. Often you’re dealing with the loss of a loved one while also trying to navigate confusing estate and property valuations. If an inherited property ends up selling for more than the probate valuation, this only adds to your stress. So, what happens if a house sells for a higher price than the probate valuation?

 

If a property is sold during probate for more than the probate valuation, HMRC might question the accuracy of the initial valuation and request a RICS valuation of the property. If HMRC decides to increase the probate valuation, more inheritance tax will need to be paid. The executors of the will can also amend the probate valuation, which can result in a higher inheritance tax.

 

Read on to learn more about the potential tax implications if a house sells for a higher price than its probate valuation.

Jump to section:

new build property semi detatched

What if a House Sells for More Than the Probate Valuation?

The probate value of a house is assessed at the time of the homeowner’s death and is used to calculate whether inheritance tax is owed and how much needs to be paid. If the property is later sold at a higher price than the probate value, HM Revenue and Customs (HMRC) can question the accuracy of the initial valuation. 

 

The initial valuation is more likely to be questioned if there is a significant difference in price between the probate value and the sale price, and the property was sold shortly after the valuation. The executors of the will may need to justify the original valuation or provide evidence that supports why the sale price was higher than the valuation. If HMRC finds this insufficient, the probate value might be updated to reflect the sale price, which means more inheritance tax could be owed.  This can often be avoided if the house valuation is completed by a trusted RICS-registered surveyor.


If a property sells for more than the probate valuation, but the sale price is less than the inheritance tax threshold, this typically will not lead to intervention from HMRC.

Can You Amend the Probate Value?

If the sale of an inherited property suggests that the probate value was underestimated, the executors of the will can amend the estate valuation. Executors can have the property valued by a RICS-registered surveyor to ensure it’s accurate or use the sale price as a basis to adjust the probate valuation. 

The amendment process typically involves submitting a formal request to HMRC with supporting evidence, such as the new professional probate valuation or evidence of the sale price. You will need to submit a form (C4 Corrective Account or C4(S) Corrective Inventory) to HMRC along with supporting documentation, such as new valuation reports or evidence of sale prices. 

Amending the probate valuation can have implications on both Inheritance and Capital Gains Tax calculations. For example, increasing the probate valuation to the sale price of the property would mean you are not liable for Capital Gains Tax (as there has been no increase in property value from the time of death to the time of sale). However, it could mean you are liable to pay more Inheritance Tax than previously calculated (provided the updated probate valuation is above the Inheritance Tax threshold). 

Do You Have to Pay Capital Gains Tax if the Property Sells for Above the Probate Value?

If a property is sold during probate and the sale price is higher than the probate value, there will usually be Capital Gains Tax to pay. This needs to be reported and paid to HMRC within 60 days of the sale completion date. CGT will also need to be paid if the property is sold for a higher price at a later date (provided it is not the beneficiary’s main residence). 

If the inherited property is transferred directly to the beneficiary, there will be no CGT to pay. CGT will only apply if the property is sold at a later date and it is not the main residence of the beneficiary.

Accurate House Valuations for Probates in Greater London and South East England

If an inherited property sells for more than the probate valuation, this can mean you need to pay more inheritance tax and HMRC may question the accuracy of your probate valuation. The best way to avoid this unnecessary stress and the potential expense of paying for a second valuation is to get the property valued by a RICS-registered surveyor.

The team at Crest Surveyors are all RICS Registered, so you can ensure that the property will be valued accurately and the figure will be upheld by HMRC should any issues arise. Our comprehensive probate valuation service is the best way to make the probate process as straightforward as possible. We’ll work closely with you to guide you through all formalities and stages during this difficult time. 

Our House Valuations for Probate prices start from £500, inclusive of VAT, and include:

  • A written report detailing the condition of the property 
  • An accurate valuation of the property 
  • Photographic evidence 

Get in contact with one of our team members to receive a quote on any valuations needed for probate-related enquiries.

Kitchen with dining table

Probate House Valuations FAQs

What Happens if a House Sells for Less Than Probate Value​?

If a property sells for less than its probate valuation, beneficiaries might be entitled to a refund for any inheritance tax overpayment. However, this refund can only be claimed within four years of the date of death and is not always guaranteed. 

Read our blog, ‘Can a House be Sold for Less Than Probate Value?’, to learn more.

What Happens if a Probate Valuation Is Wrong?

If an estate is incorrectly valued during probate, this can have implications for the amount of inheritance tax that needs to be paid. If HMRC believes a house probate valuation to be too low, they will investigate through their District Valuer Service and will likely ask for additional evidence or justification for the valuation. If the probate valuation was not completed by a RICS-registered surveyor, the HMRC might dispute the valuation and request a second official RICS valuation. If HMRC believes that a probate or any other part of the estate has been deliberately undervalued, it can impose additional financial penalties.

How Accurate Does a Probate Valuation Need to Be?

A probate valuation needs to be as accurate as possible to avoid potential financial penalties from HMRC and the hassle of paying additional inheritance tax if the initial valuation is found to be too low. It’s best to use a professional RICS-qualified surveyor to ensure an accurate valuation and make the probate process as straightforward as possible. 

Read more about official house valuations in our blog, ‘Do I Need an Official House Valuation for Probate in the UK?’.