Private residence relief: permitted area: jurisdiction for apportionments
The Tribunal has jurisdiction over the method of apportionment of consideration which has been given for acquisition and for disposal.
TCGA92/S222 (10) sets out that for the purpose of computing private residence relief, consideration may be apportioned wherever an apportionment is required. This section therefore allows us to apportion consideration between the parts of a property which attract relief and the parts which do not. For example, if a residence together with its garden or grounds which consist of more than the permitted area is sold, you can apportion consideration between the permitted area and the remainder. A working example is given at CG65126.
TCGA92/S52 (4) allows for apportionment of expenditure as well as of disposal consideration and provides that the method of apportionment adopted shall be just and reasonable.
If the method of apportionment is an issue you should follow the advice at CG74150+.