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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,

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