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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My mother owns a house in an acre plus 10 acres of farmland

Resolved Question:

my mother owns a house in an acre plus 10 acres of farmland on a different deed.
if she sells the farm land will this be subject to capital gains if it was sold for building land
if so could the two deeds be combined so it is her sole proprty (ie house plus 11 acres)
would she then have have to pay capital gains if the plot was sold for building land
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. You might refer to HS283 as part of this answer. Look under the headings "Gardens or grounds" and Permitted Area". Unless your mother's home is of a size and stature which requires a large piece of land for its "reasonable "enjoyment, then she will be restricted to getting main residence relief on a maximum plot size of half a hectare or 1.23 acres which includes the footprint of the house itself. If the farmland is separate from the house and its 1 acre, then she will probably be restricted to having main residence relief for the 1 acre. That will apply if the land is let also. I hope this help but let me know if you have any further questions.
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Customer: replied 1 year ago.
the farm land (10 acres) is used for 'reasonable' enjoyment,her hobby is rearing and showing rare breed cattle.
would this make the the area exempt?
Customer: replied 1 year ago.
i have the information i need, thankyou
Expert:  TonyTax replied 1 year ago.
The fact that the 10 acres is on a separate deed might be a problem as you have identified. If it is directly connected to your mother's 1 acre but separated by a fence that would be a problem even if it was on the same deed. If the hobby involves the payment of entry fees by people coming to see the cattle that may well be a problem. The term "reasonable enjoyment" is very subjective and much depends on the particular circumstances and I would need t see the site to have nay chance of making a reasonable judgement.