Property Company Business Valuation Expert Witness UK
Property investment companies and SPVs are typically valued on a Net Asset Value basis: underlying properties are valued by RICS-qualified surveyors, with net equity after debt and latent tax liabilities representing business value.
Shares in property companies often trade at a discount to NAV reflecting lack of marketability, latent stamp duty land tax on property acquisition, and capital gains tax on unrealised gains. Experts quantify the appropriate discount for litigation and tax disputes.
The distinction between property trading companies (stock in trade) and investment holding companies affects tax treatment and methodology - critical in HMRC and shareholder disputes.
| Sector / asset | Typical multiple / basis | Notes |
|---|---|---|
| Property SPV / investment co. | NAV (RICS Red Book properties) | Share discount to NAV often 10%–30%+ for latent tax/illiquidity |
| Property trading company | Stock-in-trade / earnings hybrid | Tax treatment differs from investment holding |
Indicative ranges from published transaction surveys and expert witness practice; case-specific evidence required for court.
Common questions
- How are property investment companies valued for litigation?
- Property investment companies (SPVs, property holding companies) are typically valued on a Net Asset Value basis - the underlying properties are valued by an RICS-qualified surveyor and the business value is the net equity after deducting debt and latent tax liabilities.
- What is the discount for shares vs direct property?
- Shares in a property company typically trade at a discount to NAV - reflecting lack of marketability, latent SDLT on property acquisition, and capital gains tax on unrealised gains. Expert witnesses quantify the appropriate discount based on comparable data and the specific structure of the company.
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