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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17645
Experience:  International tax
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I have a piece of land which is part of my main home. I have

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I have a piece of land which is part of my main home.
I have been offered a price to sell it for a small house to be built.
Am I liable for tax?
Hello and thank you for allowing me to assist you.
If you dispose of part of the garden attached to your home you would normally have to pay Capital Gains Tax on any gain you make.
You will be entitled to full relief under Private Residence Relief, where all the following conditions are met:
the ‘dwelling house’ has been your ‘only’ or ‘main residence’ throughout your ‘period of ownership’
you have not been absent, other than for an allowed period of absence or because you have been living in ‘job-related accommodation’, during your ‘period of ownership’
the ‘garden or grounds’ including the buildings on them are not greater than the ‘permitted area’
no part of your home has been used exclusively for business purposes during your period of ownership
You are entitled to relief if you dispose of land that you occupy as your garden or grounds, up to the permitted area, at the time of your disposal. If your piece of land does not exceed half a hectare (which is a little over 1 acre), you are entitled to relief for all of it.
If your land exceed half a hectare, you may not be entitled to relief for all of it. The area for which you are entitled to relief is called the permitted area.
It depends on how large the land is for you to claim relief on the entire sell. It is also important that the land was not part of a house you purchased to sell quickly and could only sell the land at this time.
TaxRobin and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

The land is less than one acre,

It has always been my only dwelling.

There is no business use.

I have never been absent

I have been resident for 18 years.

How do I apply (?) for 'Private residence relief' ?

You are not normally required to request the relief as it is give automatically.
If your garden and grounds exceed half a hectare, and you have disposed of all or part of the garden and grounds, you should:
• enter details of the disposal and gain on pages CG 1 and CG 2, and
• explain in the ‘Any other information’ box, box 37, on page CG 2 of the Capital gains summary pages why you think, if appropriate, all or part is exempt from (CGT).
As you have less then one acre you would not be required to request the relief.