This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

‘Ancillary dwellings’ and capital gains tax

Shared from Tax Insider: ‘Ancillary dwellings’ and capital gains tax
By Meg Saksida, February 2022

Meg Saksida explains the definition of ‘ancillary dwellings’ in the context of a recent case. 

Capital gains tax (CGT) principal private residence (PPR) relief gives an extremely valuable exemption for the taxpayer’s main residence. As a part of the ‘main residence’, the taxpayer can include their dwelling house and their garden and grounds.  

The dwelling house itself could be a single building but could also include more than one building, for example a house with a detached garage, a pool house, a glasshouse, a granny flat or another kind of outbuilding or ancillary building. 

Recently, as a result of ‘multiple dwellings relief’ for stamp duty land tax (SDLT) purposes (where SDLT is calculated not on the whole sum of the dwelling house purchased, but on the identifiable parts if there are self-contained elements of the whole main residence), the concept of when separate

This is one of our 2221 Premium articles

To see this article in full and unlock access to our complete library of 2221 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!