What is a CGT valuation?
A CGT valuation is a market value assessment of an asset prepared for capital gains tax purposes. It can be used to establish a cost base, support a tax return position, or document the value of an asset at a specific point in time.
When might a valuation be useful?
Asset owners may benefit from a valuation in situations such as transferring assets between entities, restructuring ownership, estate planning, family law matters, SMSF compliance, or to establish a value on a specific date for future CGT calculations. The need for a valuation depends on final legislation, asset type, ownership structure and eventual disposal - speak with your accountant or tax adviser before deciding.
Property valuations versus business valuations
Property valuations are generally prepared by a Certified Practising Valuer (CPV) using physical inspection and comparable sales evidence. Business and entity valuations - including private company shares, trust interests and goodwill - are typically prepared by chartered accountants or corporate finance specialists with formal business valuation credentials.
What is a retrospective valuation?
A retrospective valuation establishes the market value of an asset as at a date in the past. These reports rely on historical evidence and require a valuer experienced in retrospective methodology.
What records should owners keep?
Useful records may include purchase contracts, capital improvement invoices, rental and expense history, financial statements, share registers, trust deeds and any prior valuation reports. Your tax adviser can confirm what is relevant to your situation.
Who can perform valuations?
Property valuations are generally performed by qualified property valuers (CPV / AAPI / FAPI). Business valuations are typically prepared by chartered accountants holding a Business Valuation Specialist credential, or by corporate finance and forensic accounting practices. Membership of a recognised professional body is a useful baseline.
Questions to ask before ordering a valuation
Confirm the purpose of the report, whether the valuer is independent, the standards the report will be prepared to, the assumptions and limitations, whether an inspection is required, the turnaround, and the fee.
Important disclaimer
CGT Valuer does not provide tax, legal, financial or valuation advice. We connect users with independent qualified providers. Always speak with your accountant or tax adviser about your personal circumstances before relying on any valuation.