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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Private residence relief: permitted area: form of report to Valuation Office Agency (VOA)

You should consult the VOA by memo which should be headed, ‘Private residence relief; determination of permitted area’.

Your memo should include the following,

  • Details of the disposal which has taken place, the date of disposal, the area involved and the disposal consideration.
  • If the disposal is part of the garden or grounds, a plan showing the part disposed of and the part retained.
  • A copy of the Capital Gains Tax computation if one has been provided.
  • Details of any valuations and apportionments used in the computation.
  • The taxpayer’s opinion on the extent of the permitted area.
  • A full description of the house and other buildings on the land together with details of the use made of those buildings.
  • Your decision on the entity making up the dwelling house and the taxpayer’s opinion on the entity if it has not been agreed.
  • An explanation of what part of that dwelling house has been used as the taxpayer’s residence and the taxpayer’s opinion on the extent of the residence if it has not been agreed.
  • A full description of the land held with the residence together with details of the use made of that land.
  • Your decision on the extent of the garden and grounds of the residence and the taxpayer’s opinion on the extent of the garden and grounds if it has not been agreed.
  • If there has been a sale of part of the gardens and grounds, your view on whether there is prima facie evidence that that the part disposed of was not required for the reasonable enjoyment of the dwelling house as a residence, see CG64832.

The VOA should be asked to provide an informal opinion of,

  • The extent of the permitted area for that disposal, or if there is more than one disposal, for each disposal
  • The location of the permitted area for each disposal
  • Any necessary valuations, see CG64895
  • Any necessary apportionments between exempt and non-exempt areas, see CG64899, together with an explanation of the basis of the apportionment.