Contrary to the general rule, the WOZ value does not always have to serve as the basis for the valuation of rented properties in box 3.
Based on tax case law, in exceptional cases a lower value than the WOZ value may be used. This can lead to lower taxation. But when is this possible?
If you can demonstrate that the actual value of your rented property or properties is at least 10% lower than the WOZ value, you may use this lower market value for box 3.
The amount of rent plays an important role in determining the actual value.
The burden of proof lies entirely with you as the landlord. You must convincingly demonstrate that the market value is at least 10% below the WOZ value. In practice, this often means that an appraiser must be engaged. It is therefore wise to assess in advance whether the potential tax savings outweigh the appraisal and any advisory costs.
Are you unsure whether it would be advantageous for your situation to have a valuation carried out for a lower valuation in box 3? Please consult one of our staff members.
