Mark McLaughlin points out that the sale of part of a dwelling’s garden before the disposal of the dwelling could have unexpected tax consequences.
Capital gains tax (CGT) relief on a disposal of an only or main residence (or principal private residence (PPR) relief, as it is commonly known) is familiar to many taxpayers.
Unfortunately, the legislation can be difficult, which sometimes leads to misunderstandings and misconceptions about the circumstances where relief is available.
Garden or grounds
For example, in addition to PPR relief being available on the disposal of an individual’s only or main residence, the relief can also apply to the disposal of ‘land which he has for his own occupation and enjoyment with that residence as its garden or grounds’ up to a ‘permitted area’ (TCGA 1992, s 222(1)(b)). <> <
