Meg Saksida explains the area of land considered as 'garden and grounds' for capital gains tax main residence relief and when this can be challenged.
It has never been the intention of the Treasury to impose a tax charge on a gain made by an individual selling their family home. The logic behind this is that everyone must live somewhere and if, on the disposal of the main residence, there is a gain (in the absence of any trading), this is simply a happy consequence.
However, there is a capital gains tax (CGT) charge on gains made on the disposal of fields, pony paddocks, pasture and other land. The question, therefore, arises: where do the grounds of a property end, and a field or other kind of land begin? What exactly are 'garden and grounds', and how large are they able to be and still achieve main residence relief for