A client is downsizing and disposing of their main residence. The property has 2 acres of garden.
Would the whole area qualify for Private Residence Relief?
Whether Private Residence Relief (“PRR”) applies in your client’s scenario depends on a number of factors. We will explore some issues that need to be considered before giving advice to your client.
PRR is legislated for at s.222 TCGA 1992 and applies to a gain accruing to an individual on the disposal of, or an interest in, a dwelling-house or part of a dwelling-house which is, or has been in his period of ownership has been, his only or main residence. s.222 (1)(b) extends the relief to land which the person has occupied or enjoyed with the said residence as “its garden or grounds up to the permitted area”.
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Source: Croner Taxwise