Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Private residence relief: disposal of part of garden or grounds

If a person disposes of part of the garden or grounds of their residence the amount of private residence relief due will depend on three factors

  • whether the land sold falls wholly within, partly within or wholly outside the permitted area
  • whether the person computes the gain on the separate asset basis of CG71850+ or on a part-disposal basis
  • whether any restriction is needed for the use of the dwelling house.

The following examples illustrate the various forms of computation.

The example at CG65124 provides a form of computation which can be used on the separate asset basis when the land which has been sold falls wholly within or wholly outside the permitted area and whether or not any restriction is needed for the use of the dwelling house.

The example at CG65125 illustrates the form of computation which can be used on a part-disposal basis when the land which has been sold falls wholly within or wholly outside the permitted area and whether or not any restriction is needed for the use of the dwelling house.

The example at CG65126 illustrates the form of computation which can be used on the separate asset basis where the land which has been sold falls partly within the permitted area, whether or not any restriction is needed for the use of the dwelling house.

The example at CG65127 illustrates the form of computation which can be used on a part-disposal basis when the land which has been sold falls partly within the permitted area, whether or not any restriction is needed for the use of the dwelling house.