Capital Gains Tax (CGT) can have a major impact when selling, gifting, or restructuring agricultural land and farms. Unlike residential property, farmland values are influenced by a wide range of factors — from tenancy agreements and planning potential to quotas, access, and long-term development prospects. At Fallows, we specialise in RICS-compliant CGT valuations for farmland and rural property across the South of England, ensuring that your tax reporting is accurate and defensible.

What Makes Agricultural CGT Valuations Different?

Valuing farmland for CGT purposes is rarely the same as valuing a house, which is why a qualified Land Agent with experience in valuing agricultural assets is required. The following issues often play a significant role:

  • Tenancy arrangements – If any part of the land is let, the type of tenancy (AHA, FBT, secure farm worker accommodation, or equine licences) can greatly affect market value. Longstanding Agricultural Holdings Act (AHA) tenancies may substantially reduce value compared with vacant possession.
  • Hope value and development potential – Land close to settlements or earmarked in Local Plans may carry additional value for future development. We reflect this carefully and transparently in our reports.
  • Constraints – Farms can be affected by restrictions such as Listed Buildings, SSSI designations, flood risk, conservation areas, or National Park status. These must all be considered when determining value.

Retrospective & Historic Farmland Valuations

We are regularly instructed to provide 1982 base valuations and other retrospective farmland valuations for CGT. With access to detailed market commentary from the 1980s and 1990s, as well as transactional databases, we can produce accurate reports even where current sales evidence is scarce.

Our Approach

Every agricultural CGT valuation includes:

  • A full RICS Red Book compliant report
  • Inspection of the land and relevant farm buildings, often using a drone
  • Assessment of tenancy arrangements and their impact on value
  • Supporting market evidence and commentary
  • Delivery within 7–10 working days, with clear explanations suitable for HMRC

Get a Fixed Price Quote for a CGT Valuation

Use our Smart Map

For our cheapest quote, please use our smart map to view and select your property(s).

OR

Request a Callback

Complete a simple form — if we cannot identify the property easily, we may need to call you back.

Start

Frequently Asked Questions About Capital Gains Tax Valuations

Find answers to the most common questions executors, solicitors, and families ask about probate valuations and the inheritance tax process.

What is a Capital Gains Tax valuation and when is it needed?

A Capital Gains Tax valuation is an assessment of a property’s market value to calculate tax owed when the asset is sold, transferred, or gifted. It’s often required when disposing of property, selling an inherited home, or transferring assets between connected parties.

What is a historical property valuation for Capital Gains Tax?

CGT is a tax calculated on how the price of an asset has increased since you came to own it. A historical property valuation determines the value of a property at a specific date in the past if there isn't clear evidence of a purchase price. The valuation is often the date of acquisition or a key tax reference date such as 31 March 1982 so that capital gains can be calculated accurately.

How far back can HMRC request a historical valuation?

HMRC can require historical valuations going back many years and as far as 1982 depending on the asset’s ownership history. This might include valuation dates decades in the past, especially for long-held family properties or agricultural land.

Can HMRC challenge my Capital Gains Tax valuation?

Yes, HMRC can and does challenge valuations. If there is a significant difference between your valuation and theirs, they may request further evidence or refer the case to the Valuation Office Agency. Using detailed, evidence-based reports reduces this risk.

What information is needed for a CGT or historical valuation?

A valuer will typically require the property address, photographs, floor plans, land area, planning history, and details of any significant improvements since the relevant valuation date. For historical dates, local market evidence from that time will be researched by the Valuer.

How are improvements accounted for in a CGT calculation?

The cost of qualifying capital improvements (such as extensions or conversions) can be deducted from the gain, so accurate records and receipts are important.

Can a CGT valuation reduce my tax bill?

Yes, if carried out accurately and supported by evidence, a valuation can ensure you only pay tax on the actual gain. Overstating the value at acquisition (or understating at disposal) could result in paying more than necessary.