CG64350 | Private residence relief: garden and grounds: introduction

The guidance at CG64230+ explains how to identify the entity of the dwelling-house for the purposes of s222(1)(a) TCGA92.

In addition to the relief available on the disposal of a dwelling-house, relief may also be due under s222(1)(b) TCGA92 on the disposal of land held with that dwelling-house.

To qualify for relief the land must meet the following conditions on the date on which it was disposed of:

· It must be occupied and enjoyed as the garden or grounds of the residence, see CG64360, and

· Consist of an area that does not exceed the permitted area, see CG64800+.

Although these tests must be satisfied on the date of disposal of the land, this does not mean that all land which meets the above conditions will necessarily qualify for full relief. This is because the tests set out in s222(1)(b) TCGA92 simply determine which land can, in principle, qualify for relief.

The actual amount of relief available is determined by the rules set out in s223 TCGA92. The amount of relief available under s223 TCGA92 is dependent on how the dwelling-house was used over the period of ownership. However, s223 TCGA92 makes no reference to how the land was used over the period of ownership. Therefore, the use of the land at any date other than the date of disposal is irrelevant. Some examples which illustrate this are given at CG65110 and CG65111.

You should also bear in mind that the concept of curtilage, which is explained at CG64245, has no place in determining the area of garden and grounds. For the purposes of private residence relief, the concept of curtilage relates solely to the identification of the entity of the dwelling-house. The garden and grounds of a dwelling-house, or the permitted area of the garden and grounds, may well extend beyond the curtilage of the dwelling-house.