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.

House, garden and grounds: What qualifies for private residence relief?

By Sarah Bradford, September 2020

Sarah Bradford looks at capital gains tax private residence relief and the extent to which it applies to gardens and grounds. 

Most people assume that if they make a gain on the sale of their main residence, there will be no capital gains tax to pay. However, that is not a given.  

Where a taxpayer has more than one property, only one can be the main residence at any given time. Furthermore, a property can only be considered as a main residence if it is lived in as such. A married couple and civil partners can only have one main residence between them. 

Even where a property has been used as a main residence, the whole property will not always qualify for the relief. For example, if part of the property is used exclusively for business purposes, any gain relating to that part is taxable. Problems may also arise where the property has extensive gardens or grounds,

This is one of our 1891 Premium articles

To see this article in full and unlock access to our complete library of 1891 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 for signing up to hear from us!