You may have heard the term Red Book valuation being used by solicitors, accountants and surveyors, but what exactly does it mean? Symonds & Sampson's Annie Helliwell explains the term, and when one might be required.
A Red Book Valuation is a valuation that has been prepared in accordance with the Royal Institution of Chartered Surveyors (RICS) Red Book Valuation Global Standards. The Red Book sets out mandatory guidelines and reporting standards ensuring that you can be confident that the valuation has been prepared to a rigorous standard by an independent qualified RICS registered valuer.
Valuations are required for a whole plethora of reasons from secured lending, capital taxation and accounting through to estate planning and dispute resolution to name a few.
Red Book valuations are often relied upon by other professionals for example, a solicitor will require an Inheritance Tax valuation in order to apply to HMRC for grant of probate. Rural property can often comprise multiple types of assets and uses and therefore a Red Book valuation can identify assets where reliefs such as Agricultural Property Relief could be applied meaning that a Red Book valuation can play an important role in tax and estate planning. It is therefore imperative that a valuation report is thoroughly researched and documented, prepared by an independent valuer working to a set of consistent and recognised standards, and that it will be able to stand up to scrutiny.
Symonds & Sampson LLP have a team of RICS Registered Valuers across the region who able to provide Red Book Valuation Reports on a whole range of assets from residential dwellings to farms, land and rural estates as well as commercial premises, investment portfolios and development land. Please get in touch with your local office for more information.