Readers’ forum: Plot development

27 October 2015

Issue: 4524 / Categories: Forum & Feedback

To what extent do roadworks mean that main residence relief cannot be claimed?

A client is considering the sale of her primary residence and land which has a total area of 0.35 hectares. She was granted full planning permission for 12 dwellings and to ensure that the permission did not lapse she started work within the requisite three-year period.

The work comprised the construction of a short access road that is not contiguous with the highway and has an area of about 60 square metres. This road will provide access to two plots and the existing house that will not be demolished.

By starting this work it will not be possible to claim private residence relief for the whole. Therefore the capital gain arising from the eventual sale would need to be apportioned between part qualifying for only or main residence relief and a non-qualifying gain.

However would the capital gains liability be...

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