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Sam
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Sold a property with eight and a half acres. The property was

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Sold a property with eight and a half acres. The property was fairly large (5 bedrooms and four stables) The sale value of the property reflected the fact that people could keep horses. Can I claim that there is no capital gains liability as the land was necessary for 'reasonable enjoyment' of the property. I estimate the gain is in the order of £35,000 divided between my wife and I.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question, my name is ***** ***** I am one of the UK tax experts here on just Answer.
Were the stables used? By yourself or did you allow others to keep their horses their?
Usually any property sale with more than 0.50 hectares (which is 1.23 acres) will give rise to a capital gain on sale, but as you point out, if it can be demonstrated that the additional land was used and fell into the category of reasonable enjoyment then HMRC would be willing to consider this also covered under private residence relief.
Could you advise how you reasonably enjoyed this additional land which amounts to over 7 acres, as its not enough to say this was the case, you have you demonstrate this was fact.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Dear *****,

Thank you for responding so quickly.

The stables and land were used for entirely private use. The stables(For four horses) were never rented out and no horses other than ours were kept in the fields.
My wife is a very keen dressage rider and enters and judges many competitions. We had a dressage arena in one of the fields and again this was entirely for private use and added to the personal enjoyment of her sport.
Hope I have given you sufficient information.

Best wishes,

Cameron







Expert:  Sam replied 2 years ago.
Hi Cameron
Thanks for your response
Then you have a good chance of getting HMRC to agree that private residence relief should apply against the whole gain.
You will need to write to them (let me know if you need an address) and mark both your letter and the envelops c/o The Technical team - detailing the property sale, and the size of the land, and stables, and the fact that your wife specifically enjoyed the benefit of the land and the stables for her enjoyment as a dressage rider, and that you feel this qualifies the profits made as covered under the private residence relief rules.
They will then give you a formal ruling - which settles the matter - and hopefully will result in exemption from capital gains
If you could let me know the outcome, it would be appreciated.
Thanks
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13810
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Not sure what is happening. I keep getting e-mails asking me to rate your

service. Which I have done rating as good. Certainly high enough for you to be paid. I found your comments very helpful and will let you know the outcome with the tax office.

Expert:  Sam replied 2 years ago.
Hi Cameron
Thanks for letting me know, Im not sure why emails keep being sent to you asking for you to rate, as I can see you have already done so - it might be due to the fact that I provided a further answer (which you do not have to pay for again) so I have sent this response as an information request and I hope that stops any further requests coming your way.
Thanks
Sam
Customer: replied 2 years ago.

Dear *****,

Further to your help so far you offered to let me know where to write the the Technical Team. Also should I write and obtain a response before from them before submitting my tax return.

Thank you once again for your help to date

Best wishes,

Cameron

Expert:  Sam replied 2 years ago.
Hi Cameron
Thanks for the rating and for your further questions.
I would write first ( you do not indicate whether the sale took place before or after 05/04/2014, but I am assuming before)
So if you file online you have until 31/01/2015 - and to 31/10/2014 if you fill in the paper return, so I would be inclined to write to HMRC now, and your letter (and the envelope) should be addressed to
Technical team
HM Revenue & Customs
Self Assessment
PO Box 4000
Cardiff
CF14 8HR
Make sure you put both your unique taxpayer reference and your National Insurance number on the letter
OR email
Link here for you to do this, just scroll down and click on self assessment or go though your self assessment online services
http://www.hmrc.gov.uk/contactus/online-services.htm
Thanks
Sam

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