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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Private residence relief: permitted area: procedures

The extent of the permitted area is a common area of disagreement between HMRC and taxpayers. However it is the responsibility of the Valuation Office Agency to decide the extent and location of the permitted area. Consequently the procedures described at CG64860+ should be followed in every case where the extent and location of the permitted area is at issue.

Although the guidance at CG64800+ explains the statutory and case law background and the factors that the District Valuer will take into account in determining the permitted area, you should not enter into correspondence or otherwise attempt to determine the extent and location of the permitted area without advice from the District Valuer. Where, as a result of enquiries, the extent and location of the permitted area needs to be considered, you must follow the guidance at CG64860+

Before the District Valuer is able to make a determination on the extent and location of the permitted area, certain preliminary decisions must be made. These are set out at CG64821.

If the District Valuer is unable to reach agreement with the taxpayer, you will be assisted by Capital Gains Technical Group and by the Valuation Office Agency in progressing your case to any contentious hearing that is needed. In these circumstances you must follow the guidance at CG64878+.