CG65113 | Private residence relief: example: sale of dwelling-house: land exceeds permitted area

This example illustrates the apportionments which are required when a dwelling-house is sold with garden or grounds which exceed the permitted area (see CG64800+).

C owned a dwelling-house, which has always been his only or main residence, together with 5 hectares of land which has always been the garden or grounds of that residence. The property cost £250,000 in May 2011 and he sold it for £500,000 in March 2021.

The First-tier Tribunal determined that the permitted area in March 2021 was two hectares. The Valuation Office has agreed the following apportionments:-

The gain on the dwelling-house and permitted area is wholly relieved so no computation is needed. The gain on the remaining land is computed as follows.