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HMRC internal manual

Capital Gains Manual

Private residence relief: partly exempt land: introduction

There are two general principles, explained in CG64350+, which determine the extent to which private residence relief applies on a disposal of land which, at the date of sale, is the garden or grounds of its owner’s residence. These principles apply whether the land is sold with the dwelling house or separately. These principles are

  • relief for the land is determined by the use of the dwelling house over the period of ownership


  • relief cannot be obtained on a disposal of land which falls outside the permitted area.

The examples which follow illustrate those principles to show how you should compute the amount of relief which is due in a series of typical disposals.