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HMRC internal manual

Capital Gains Manual

Private residence relief: permitted area: no agreement

If the Valuation Office Agency (VOA) is unable to reach agreement with the taxpayer through negotiation you will be provided an ‘unagreed’ report which will include,

  • The VOA’s opinion on the extent of the permitted area
  • A map showing the location of the permitted area.

The VOA may also report valuations and apportionments which are unagreed. However, if the permitted area is not agreed you should always follow the guidance at CG64860+ irrespective of whether there are also unagreed valuations and apportionments; you should not follow the unagreed valuation procedures at CG74500+ at this stage. This is because if a taxpayer considers that the whole of any land disposed of was within the permitted area, so that any gains which arise would be fully covered by private residence relief, they may not be prepared to enter into negotiations on valuations or apportionments.

If the permitted area is agreed but the necessary valuations and/or apportionments are not agreed you should follow the unagreed valuation procedure explained at CG74500+.