Does the Royal Institution of Chartered Surveyors (RICS) Valuation Standards (the Red Book) apply to tax valuations?
When reporting any valuation for the purposes of Capital Gains Tax, valuers should normally state that the valuation has been carried out in accordance with RICS guidance note UKGN3, which applies to Capital Gains Tax, Inheritance Tax and Stamp Duty Land Tax. If a valuer is requested by a taxpayer to adopt a different basis or depart from the above assumptions this should be made clear in the report. The UKGN3 assumptions may result in a market value for tax purposes that is different from that adopted for other purposes as in Practice Statement 3.2. For example, if there is a special purchaser in the market for the property at the valuation date then the market value for tax purposes may reflect the bid of the actual special purchaser whereas the definition of market value in PS 3.2 requires any element of special value to be disregarded because it is only assumed that there is a willing buyer, not a particular willing buyer. The market value in accordance with PS 3.2 will therefore o
