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Tax on separating a residential property.
Our client has lived in his own property for a considerable time as his principal private residence. The total land area is within the permitted area.
When he first occupied the property there was a dilapidated but large shed in the garden. This he renovated and used as a games room for some years before adding a kitchen and bathroom. Some years later he obtained planning permission under permitted development for this building to be used for residential purposes but subject to it remaining part of the main property. After a while he demolished the existing building and constructed what was in effect a new house but still as an annex to the main property this being occupied by an adult son. He has now had the tie to the main property removed and wishes to sell the property.
It looks likely to me that...
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