Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: Should client declare disposal of property in tax return?

03 January 2023
Issue: 4870 / Categories: Forum & Feedback
Return dilemma

A client has told me that he has disposed of his main residence. It was a large property with extensive grounds which exceed half a hectare. From what I can see and from what the client tells me the whole of the grounds would meet the reasonable enjoyment test and there is no doubt that all of the other requirements for relief are met.

The client has asked me whether he needs to make any reference to the disposal on his tax return. Even though he thinks that he would win any argument with HMRC on the point he would prefer not to risk an enquiry being opened and therefore would if he can legally do so prefer not to make any reference on his return.

Private residence relief is not subject to a claim. So if the disposal is outside the capital gains tax charge there...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon