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Do I Need a Home Report for Divorce, Probate or Tax?
A quick decision guide explaining when a Home Report is needed and when a separate valuation may be more appropriate for divorce, probate or tax.
Article introduction
- Owners who need a property value but are not sure which report to order.
- Families dealing with probate, executry, separation or tax questions.
- Sellers who want to avoid paying for the wrong type of report.
You usually need a Home Report when a Scottish residential property is being marketed for sale. For divorce, probate, executry or tax, you may instead need a separate formal valuation report. If the property is later sold on the open market, you may need both.
The simple decision test
Ask first: is the property being marketed for sale? If yes, a Home Report may be required. If no, ask why the value is needed. If it is for probate, executry, divorce, separation, Capital Gains Tax or accounting, a formal valuation report may be more appropriate.
The same property can need different reports at different stages. The right document depends on the purpose.
Divorce or separation
If one owner is buying out the other, or the property value is needed for financial settlement discussions, a matrimonial valuation may be needed. A Home Report is usually more relevant if the property will be marketed for sale.
Ask your solicitor whether the valuation should be jointly instructed, Red Book compliant or prepared at a specific date.
Probate or executry
Executors may need a property valuation for estate purposes, sometimes based on the date of death. That is not the same as preparing a property for sale.
If the inherited property is later marketed, a Home Report may then be required as part of the Scottish selling process.
Capital Gains Tax
For tax, the relevant valuation may depend on acquisition value, date-of-death value, historic market value, improvement costs or the actual sale price. A Home Report valuation may not answer the tax question by itself.
Speak to an accountant or tax adviser before relying on a Home Report for CGT calculations.
When you may need both
You may need a formal valuation first for legal or tax reasons, then a Home Report later when the property goes on the market. This is common with inherited properties, separation sales and second homes.
To avoid duplication, explain the full background to your solicitor and surveyor before booking anything.
FAQs about choosing the right report
Can one report cover everything?
Sometimes, but often not. A report prepared for marketing may not be suitable for legal or tax purposes. Confirm the required purpose before instructing.
Should I ask a solicitor first?
Yes, if the valuation is for divorce, probate, executry, tax or a transfer rather than a straightforward sale.
Is a Home Report cheaper than a valuation report?
Not necessarily. Costs vary by property, surveyor and report type. The important point is to order the report that matches the purpose.
What should I tell the surveyor?
Tell them why the valuation is needed, who will rely on it, whether a specific valuation date is needed and whether the property will later be sold.