When Do You Need a Red Book Valuation?

When Do You Need a Red Book Valuation?

If you're involved in buying, selling, inheriting, or transferring property, you may come across the term Red Book valuation. But what exactly does it mean and when is it required?

A Red Book valuation is a formal property valuation carried out in accordance with the RICS Valuation – Global Standards (commonly known as the Red Book). It must be prepared by a RICS Registered Valuer and follows strict standards around independence, ethics, and reporting.

Below, we explain when you’ll typically need one and why instructing a qualified valuer matters.

Common Situations That Require a Red Book Valuation

1. Probate and Inheritance Tax

When someone passes away, HMRC requires a professional valuation of the deceased’s property to calculate inheritance tax. A Red Book valuation ensures the figure is robust, defensible, and compliant with HMRC requirements—minimising the risk of penalties or delays.

2. Capital Gains Tax (CGT)

If you’re disposing of a property that’s not your main residence (e.g. a rental or inherited asset), a Red Book valuation may be needed to establish the property’s value at a historic date (e.g. April 1982 or the date of inheritance) for CGT calculations.

3. Shared Ownership & Help to Buy

Whether you’re staircasing, repaying a Help to Buy loan, or selling, Homes England and Housing Associations usually require a RICS Red Book valuation to determine the property’s market value without estate agent influence.

4. Matrimonial & Family Proceedings

In divorce or separation cases, a neutral, independent Red Book valuation can help determine the fair value of the marital home or investment properties. The courts typically expect valuations to be RICS-compliant.

5. Secured Lending or Refinancing

Banks and lenders frequently require Red Book valuations when granting mortgages or commercial loans to ensure the asset provides sufficient security.

6. Company Accounts & Asset Valuations

Companies may require formal Red Book valuations of property assets for accounting purposes, audit compliance, or when reporting to shareholders.

7. Legal Disputes & Expert Witness Reports

In litigation—whether boundary disputes, compulsory purchase, or rent review arbitration—a Red Book valuation is usually necessary as part of a professional expert witness report.

What Makes a Red Book Valuation Different?

Unlike informal or estate agent valuations, a Red Book valuation:

• Is completely independent and unbiased

• Must be carried out by a qualified RICS Registered Valuer

• Includes a clear basis of valuation, methodology, and supporting market evidence

• Is suitable for use in legal, tax, and professional contexts

• Is often a requirement for compliance with HMRC, the Courts, or government schemes

Conclusion: Do You Need One?

If your valuation is being used for legal, tax, shared ownership, or dispute resolution purposes, chances are you do need a Red Book valuation. It provides peace of mind, professional reliability, and assurance that your property has been assessed to an approved global standard.

At Olden Property, all our reports are prepared by RICS Registered Valuers and comply with the Red Book. Whether you're navigating probate, lease extension, or a Help to Buy repayment, we’re here to provide clear, expert advice.