Accountancy Valuations under FRS 102
If you own an investment property, do you know how much you owe in tax?
Do you fully understand what can be deemed as an investment property and which properties are exempt from taxes under FRS 102?
An investment property isn’t the same thing as a commercial property. That means that just because you need your property to make a living, you might not necessarily be subject to pay tax under FRS 102.
At Winfields Chartered Surveyors, we’re a team of property experts that can remove the confusion and uncertainty surrounding the complex rules that apply to the recently updated sections in FRS 102 that relate to properties.
We can also produce accurate, timely and cost-effective market/property valuations, enabling you or your accountant to calculate your tax obligations with ease and pinpoint accuracy.
What you can do with an accountancy valuation?
Obtain a detailed report for your accountant
It’s usually your accountant’s job to calculate your tax obligations on your investment property. But they need one of our valuation reports to calculate an accurate figure.
Prevent delays and disputes
There’s no need to let the complexities of FRS 102 confuse you or prevent you from generating income when you can let us produce an accurate valuation without delay.
Avoid penalties and losses
Calculate your tax obligations incorrectly, and you could be penalised. Overvalue the profits you make from your investment property’s rental income or capital appreciation, and you risk paying too much tax unnecessarily.
Are all investment properties subject to tax under FRS 102?
Under FRS 102, any property held by an owner or lessee to earn income via rentals or capital appreciation needs to pay taxes on their gains. The same applies to owners and lessees who own part of a building or a parcel of land for the same reasons.
You may not be subject to pay tax on your property if it is used to:
Produce or supply services or goods
Carry out administrative tasks for your business
If you sell your property, the rules surrounding taxation on investment properties differ. The most straightforward way to find out which laws and taxes apply to you is to call one of our RICS Surveyors and Valuers for advice.
Why you need a valuer to create your accountancy valuation report
Nobody wants to pay more tax than necessary on their investment property. As a result, if you don’t want to pay over the odds – or risk paying too little – you need to provide your directly linked to the value of your property and the profits you make from its appreciation or rental income.
As you can imagine, mistakes can be costly. They can also take a long time to rectify. Our experts use the latest tools, equipment and their expansive knowledge of the property industry to produce accurate reports that will save you time, money and effort.
You are required to obtain a triennial review of your property value, income and tax obligations. If it’s been nearly three years since you obtained an accountancy valuation, now’s the time to call our experts.