CG64388 | Private residence relief: garden and grounds: ownership

S222(1)(b) TCGA92 requires that in order to qualify for relief land must be held with the residence. This will usually, but doesn’t always mean, that the land is in the same ownership as the dwelling-house. However, as explained at CG64470, a dwelling-house can be a person’s residence without them owning it. This means that if a person lives in a dwelling-house which they do not own, but they own land which is the garden and grounds of that dwelling-house, relief will be available on a disposal of that land provided the other conditions for relief are fulfilled. Land can still be part of the garden and grounds of a person’s residence even if that person does not own the dwelling-house.

It may be rare for a person to own the land but not the dwelling-house, but the following examples may occur:

• Dwelling-house owned by the trustees, and residence of a beneficiary, land owned by beneficiary.

• Dwelling-house owned by company, and residence of director, land owned by director.

• Dwelling-house owned by one spouse or civil partner, and the land owned by the other spouse or civil partner.

In each of these cases relief may be due on a disposal of the land if the other conditions for relief are fulfilled.