Half hectare limit for only or main residence relief

In ‘Virtually there’ (Taxation 10 December 2020 page 16) we discussed our recent experience in the processes involved in preparing for and representing appellants at a First-tier Tribunal hearing. We now examine the facts and technical points of the case itself which may be of particular interest to advisers whose client base includes wealthy individuals who own properties with large gardens and grounds.

The tribunal case – Leslie and Catherine Phillips (TC7859) – concerned the application of capital gains tax only or main residence relief on the sale of their home by a husband and wife (tinyurl.com/y858en3r). Generally homeowners do not pay capital gains tax on the sale of their home because of this valuable relief but the rules can be complex in some circumstances one of which is where the garden and grounds are particularly large.

The legislation at...