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Will sale of the grounds of a property be eligible for main residence relief?
A client owns a plot of land that extends to 12 acres. On this land is his own private residence with gardens and woodland. The client has been approached by a neighbour who would like to acquire one acre of the garden. The neighbour’s plan is to use the plot as part of his own garden. Our client and his neighbour have tentatively agreed a price in excess of £250 000 for the land.
We should grateful if Taxation readers could give us their views on whether the sale of this plot would be exempt from capital gains tax under the only or main residence relief rules. We look forward to replies from Taxation readers with interest.
Query 18 947– Woody.
Reply by RN
The basic rule under TCGA 1992 s 222(1) is that relief applies to a gain accruing to an individual so far as attributable to...
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