RICS Red Book Valuations of Farms, Land and Property
Formal valuations of farms, land and rural property across the North West, prepared and signed by our RICS Registered Valuer, Luke Banks MRICS FAAV.
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- Regulated by RICS
- Director is a Fellow of the CAAV
- Fee agreed in writing before any work starts
Who Our Valuations Are For
We act for farmers, landowners and their professional advisers who require a valuation that HMRC, a court, a lender or another party will accept. The most common purposes are:
- farm valuations for inheritance tax and probate
- capital gains tax, for example on the sale or transfer of land
- the purchase or sale of a farm, land or buildings
- matrimonial and separation matters
- assessing whether land holds development potential
What a Red Book Valuation Includes
- an inspection of the land and buildings
- statutory checks of the property
- comparable evidence and our valuation workings
- schedules of the land and buildings included in the valuation
- a written report prepared under the RICS valuation standards (the Red Book), stating the purpose of the valuation, the basis of value and the valuation date
Agricultural Property Relief and Inheritance Tax Valuations
Since 6 April 2026, 100% agricultural property relief (APR) and business property relief (BPR) apply only to the first £2.5 million of combined qualifying property. Above that threshold, relief is given at 50%.
The implications for a farm valuation are as follows:
- the value now determines how much of the estate falls above the £2.5 million allowance
- any unused allowance may pass to a surviving spouse or civil partner, so a married couple or civil partners may be able to pass on up to £5 million of qualifying property at 100% relief between them
- where the first spouse or civil partner died before 6 April 2026, the full £2.5 million is treated as available to transfer
- inheritance tax on property qualifying for APR or BPR may be paid in ten equal annual instalments, free of interest
A current valuation also allows families and their accountants to plan ahead with confidence, rather than discovering their position only after a death.
Agricultural Value, Development Value and the Farmhouse
APR extends only to the agricultural value of land, being its value if it could only ever be used for farming.
Where land carries hope value for housing or other development, the value above its agricultural value falls outside APR. An inheritance tax valuation should therefore state both figures where they differ, so that your advisers can see clearly where relief applies.
The farmhouse, cottages and farm buildings may qualify for APR, but only where they are of a character appropriate to the holding. The report should describe them clearly and set out the evidence supporting their value.
Capital Gains Tax Valuations, Including 31 March 1982 Values
Capital gains tax frequently requires a valuation at a past date. The most common instances are:
- land owned on 31 March 1982, where the gain is usually calculated from its market value on that date
- gifts of land, and sales to family members or other connected persons, which are valued at market value on the date of disposal
A retrospective valuation relies on sales and rental evidence from the relevant period. HMRC may ask the Valuation Office Agency to review land values, so the report must demonstrate its reasoning in full.
Valuations for Lending, Sale, Purchase and Compulsory Purchase
- Buying or selling: an independent figure before a price is agreed, or to support a transaction between family members.
- Lending: please tell us at the outset which lender is involved, as lenders usually have their own reporting requirements.
- Compulsory purchase: where land is acquired for a road, pipeline or other scheme, a valuation establishes the value of the land taken and the effect on the remainder of the holding.
The Red Book and RICS Registered Valuers
The Red Book comprises the RICS Valuation Global Standards together with a UK national supplement. The current edition took effect on 31 January 2025, and RICS members must comply with it when providing written valuations.
Our director, Luke Banks BSc (Hons) MRICS FAAV, is an RICS Registered Valuer and a Fellow of the Central Association of Agricultural Valuers. He has more than a decade of experience in Land Agency.
How the Process Works
- Call us or request a call back. We establish the purpose of the valuation and the property and land involved. We value agricultural, residential and commercial property.
- We issue written terms of engagement before any work begins, setting out the scope of the instruction.
- We inspect the property.
- You receive the written report, signed by an RICS Registered Valuer.
How Long a Red Book Valuation Takes
The signed report is typically issued within seven days of our inspection.
Next Step
Call us on 07857 877925 or request a call back. It is helpful to know the purpose of the valuation and, for probate, the date of death. A plan of the land is useful if you have one.
Common Questions
Do I need a Red Book valuation for inheritance tax?
HMRC requires the open market value of land and property as at the date of death. A Red Book valuation by an RICS Registered Valuer is the established means of providing a figure HMRC can rely upon, because the report sets out the evidence and explains precisely how the value was reached.
What is the difference between a Red Book valuation and a market appraisal?
A market appraisal is an agent's opinion of the price a property might achieve on the open market. A Red Book valuation is a formal report prepared by an RICS Registered Valuer under the RICS valuation standards, intended for purposes such as taxation, secured lending and court proceedings.
How do the 2026 inheritance tax changes affect farm valuations?
Since 6 April 2026, 100% agricultural and business property relief applies only to the first £2.5 million of combined qualifying property, with relief at 50% above that threshold. Any unused allowance may pass to a surviving spouse or civil partner. As value now determines how much tax is payable, an accurate and well evidenced valuation is more important than ever.
Does agricultural property relief cover development value?
No. Agricultural property relief extends only to agricultural value, being the value of the property if it could only ever be used for farming. Any additional hope or development value falls outside the relief. A farmhouse, cottages and farm buildings qualify only where they are of a character appropriate to the holding, so the valuation must address them with care.
Do I need a 1982 valuation for capital gains tax?
If you owned the land on 31 March 1982, the gain on a later sale or gift is usually calculated from its market value on that date. This calls for a retrospective valuation founded on evidence from the early 1980s. Gifts and sales to family members and other connected persons are likewise valued at market value on the date of disposal.
Can HMRC challenge my valuation?
Yes. HMRC may refer the value of land stated in a tax return or an inheritance tax account to the Valuation Office Agency for review. A Red Book report that sets out the evidence and the reasoning makes it considerably easier to answer any enquiry and to defend the figure should it be questioned.
Can inheritance tax on a farm be paid in instalments?
Yes. From 6 April 2026, inheritance tax on any property qualifying for agricultural or business property relief may be paid in ten equal annual instalments, free of interest. Your solicitor or accountant will advise on the tax position itself, and we provide the valuation upon which those figures are based.
Do you value land for compulsory purchase?
Yes. Where land is acquired for a road, a pipeline, a housing scheme or another public project, a valuation establishes the value of the land taken and the effect on the remainder of the holding. Our director, Luke Banks, can value the land and advise you before negotiations with the acquiring authority begin.
Reviewed by Luke Banks MRICS FAAV, RICS Registered Valuer, on .
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