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KembaraXtra – Legal Terms – Market Value
Market value refers to the price that property or an asset would reasonably achieve if sold on the open market between willing parties acting prudently and without pressure.
The concept is important in taxation law, especially for capital gains tax and inheritance tax. Courts often rely on hypothetical assumptions about how a reasonable seller and buyer would behave in an open market transaction.
The valuation process assumes exposure to all potential purchasers and aims to identify the best price realistically obtainable. The actual intentions or personal circumstances of the real owner are usually ignored.
Judicial decisions have clarified that market value depends on objective assessment rather than subjective preference, ensuring fairness and consistency in taxation and commercial disputes.
Market value refers to the price that property or an asset would reasonably achieve if sold on the open market between willing parties acting prudently and without pressure.
The concept is important in taxation law, especially for capital gains tax and inheritance tax. Courts often rely on hypothetical assumptions about how a reasonable seller and buyer would behave in an open market transaction.
The valuation process assumes exposure to all potential purchasers and aims to identify the best price realistically obtainable. The actual intentions or personal circumstances of the real owner are usually ignored.
Judicial decisions have clarified that market value depends on objective assessment rather than subjective preference, ensuring fairness and consistency in taxation and commercial disputes.
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