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HMRC internal manual

Capital Gains Manual

Private residence relief: permitted area: jurisdiction for valuations

CG65126 and CG65127 give examples of the valuations and apportionments that you are likely to need to compute where only part of the garden and grounds of a person’s residence qualifies for relief.

However the First-tier Tribunal does not have any jurisdiction to determine the value of land, or of any lease of land in the United Kingdom, if that value is needed for the purpose of computing a chargeable gain. The sole jurisdiction for this rests with the Lands Tribunal (the Lands Chamber of the Upper Tribunal), or with the Lands Tribunals for Northern Ireland or for Scotland, see CG74503.

If the value of land has not been agreed because agreement has not been reached on the extent or location of the permitted area, it may be appropriate, if the taxpayer agrees, to prepare alternative computations and to agree alternative valuations and apportionments based on the taxpayer’s view of the permitted area and on the Valuation Office Agency’s view. Then, when the Tribunal decides on the extent of the permitted area, they can go on to determine the appeal in figures.

If this is not possible, no evidence should be presented to the Tribunal on valuation. They should be asked to reach a decision in principle only. You should then ask the Valuation Office Agency to try to agree with the taxpayer and/or the agent the values needed and follow the guidance at CG74500+.