Essentials Flashcards
What is the definition of Rateable Value?
An estimate of what it would cost to rent a property for a year, on a set valuation date. The property is assumed to be:
- vacant
- in reasonable repair
- available to let on the open market
- FRI
What is the RICS definition of Market Value?
The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing, and where the parties had each acted knowledgeably, prudently, and without compulsion
Market Value for Statutory purposes?
Price property reasonably expected to fetch if sold on open market. Not reduced if whole property was placed on market.
Market Rent definition?
Estimated amount property leased on date between a willing seller and lessee at arms length on appropriate terms. Acting knowledgeable, prudently, and without compulsion.
6 principles of Bribery Act?
Proportionality, Top-Level Commitment, Risk Assessment, Due Diligence, Communication, and Monitoring and Review
What changed in the Red Book?
mandatory consideration of ESG factors, revised Valuation Technical and Performance Standards (VPS) aligned with the International Valuation Standards (IVS) and addressing AI.
Code of Conduct?
Public Interest
Ethical Behaviour
Respect and Diversity
Competence
Service - good quality
Legislation for NT?
Inheritance Tax Act 1984
Taxation of Chargeable Gains 1992
Prudent Lotting
Duke of Buccleuch v Commisioner Revenue and Customs. Over 500 units division was unnatural or artificial how to value is a practical question. Common sense.
Inheritance Tax Rates
40%
£325,000 tax free for an individual
£650,000 for a couple
£175,000 primary residence direct descendants
36% if 10% to charity
Principal Private Residence Relief
Determining the area of garden and grounds.
Entity of dwelling house
Extent of garden
Size of permitted area
Location of permitted area
Apportionment (S222 Taxation of Chargeable Gains Act 1992)
Hardcore and Topslice
Consider when market rent can resume either at lease or expiry date and apply appropriate yields
Term and Reversion
Income to term and market rent at reversion with appropriate yields applied sharper yield at reversion to reflect risk
Tax free allowance Capital Gains
£3,000
£1,500 for trusts
PII levels
Less than 100k is 250k
100k to 200k is 500k
Above 200k is 1m
Uninsured excess
Turnover less than 10m £10,000 or 2.5%
Exceed 10m no limit
5 principles of better regulation
PACTT
Proportionality
Accountability
Consistency
Targeting
Transparency
Charges for CGT
24% residential
28% carried interest
Basis of Value
Market Value
Market Rent
Investment Value
Fair Value
Voa act for under crca 2005?
government and local authorities in England and Wales, valuation and surveying services to public sector bodies.
Difference between public and private sector business plans?
Public good and social impact V profit and shareholder value
Protected characteristics
Age, race, religion, disability, sex, pregnancy/maternity, gender reassignment, marriage and sexual orientation
BREAM
Globally recogniaed sustainability standard. It evaluates environmental, social, and economic sustainability performance
Reviewing post and evidence
Specialeyes v felgate a shop part of a larger transaction the case noted that rents at AVD were best but rent before and after could be used to show a pattern
