Concerns that there would be a large number of properties needing valuations before April 2013 have been allayed. The deadline for the ARPT self assessment return is 1 October 2013, and properties that are commercially let out are exempted.

Our advice, as before December, remains.

For properties liable to the ARPT, where the values are likely to fall within the bands, an informal valuation as at April 2012 will suffice. In the majority of cases we expect to prepare a short form valuation report which can be submitted with the return, in order to keep costs to a minimum.

There will be properties where extra attention will be required, either close to the £2million barrier or where they are on the cusp of one of the other bands. There may be significant tax at issue; some £20,000 per annum depending on whether a property is valued just above or below £5million.

On the proposed CGT, we believe that more detailed formed valuations will be needed. Many of these valuations will be more sensitive, with a direct impact on the tax payable if and when the property leaves the corporate structure.

It will be particularly important to ensure that the values have regard to any changes to either the property or underlying market conditions in the period between April 2012 (the ARPT valuation date) and April 2013 (the CGT base date).