I8.362 Guidelines to the valuation of land
Subject to any relief available in respect of woodlands1, the value of land will include all rights attaching to the land including mining, mineral or sporting rights and rights of common. When valuing a land or building on the open market basis, HMRC expect the accountable persons to take account of any feature that may make it attractive to a builder or developer, such as large gardens or access to land2. Even if a professional valuation has been obtained, any information which comes to light, such as marketing advice, which makes the original valuation doubtful, must be accounted for by the accountable persons, either in the final valuation or declared as soon as possible, if the account has already been submitted.
Where property is let, it is usually valued by capitalising its net annual value by the number of years' purchase appropriate to its nature. The net annual value is calculated by deducting from the gross rental the annual outgoings paid by the owner of the property, such as repairs; insurance premiums; feu duty; chief rents; tithe redemption annuity; ground rent, in the case of leasehold property; replacement of furniture, linen, china etc in the case of a long furnished letting, and any other regular annual outgoings, except income tax and the expenses of management. The cost of rates or repairs or both borne by the tenant is not deductible. For land subject to an agricultural tenancy see I8.369.
If the transferor has entered into