As we approach the end of another calendar year, one looks back at an area of our work that forms a backbone to the Minerals & Waste Management team business and notes the usual wide variety of types of requirements.
Paul Malam is a Chartered Mineral Surveyor and RICS Registered Valuer and leads on valuation work for the Minerals & Waste team. 2023 has seen the usual broad range of requirements for his reports with types of valuations ranging from formal regulated reports to more informal advice to clients for internal discussion purposes.
Perhaps the most common requirement we have seen this year are valuations for a variety of tax purposes. Paul has completed numerous valuations for Inheritance Tax for mineral landowners. These have included the valuation of multiple mineral estate assets for a ‘Ten Year Charge’ in Trust, the mineral assets at an operating hard rock quarry for Probate , a Trust’s asset at a soon to be completed landfill site and also for a closed quarry and landfill site in aftercare and restoration. Each valuation is prepared for the same purpose under the Inheritance Tax Act, but clearly will look very different in terms of what there is to value. Similarly Capital Gains Tax valuations have been required for company assets at a variety of sites. In each of these cases we have often been asked to then engage with the Valuation Office to finalise a settled taxation figure when such cases are referrred by HMRC.
Whilst valuations for taxation fall under the mandatory requirements of the RICS ‘Red Book’, we are also often asked to provide more informal valuation advice for internal discussion purposes or to inform on other matters. Whilst still following the Red Book as good practice, 2023 has seen us involved in numerous valuation reporting projects such for the potential internal transfer of company assets in quarries and waste management facilities, the valuation of a landowners interest in a large hard rock quarry for potential sale and the valuation of sand and gravel reserves adjacent to an existing site to inform the operator on a potential offer price for acquisition.
As usual our valuation work has taken us right around the UK and also has included valuations for compensation and CPO, for financial reporting for company accounts, business rates, rent and royalty reviews and acting as an Expert Valuer or Single Joint Expert in legal disputes. It is the variety of valuation types but also the variety in the sites that makes this area of our business so interesting and enjoyable. It is also an area of business where extreme care needs to be taken in the application of our skills and reporting and of course where considerable experience is key.
With these highly specialist land uses, be sure that your professional valuer has that knowledge!