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ARTICLE · 28 JUNE 2022

How Big Is Your Garden?

Lewis Silkin
Lewis Silkin
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Lewis Silkin

Lewis Silkin

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When selling your main home, individuals are generally exempted from Capital Gains Tax by Main Residence relief, subject to conditions. One of these conditions is that the property's grounds...

United KingdomReal Estate and Construction
Paul Hayes
Paul Hayes
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What "reasonable enjoyment" means for tax relief on your garden when you sell.

Background

When selling your main home, individuals are generally exempted from Capital Gains Tax by Main Residence relief, subject to conditions. One of these conditions is that the property's grounds (including the footprint of the property itself) do not exceed 0.5 hectares (or c. 50 x 100 metres, 1.25 acres).

However, grounds exceeding half a hectare may still qualify for Main Residence relief where, "regard being had to the size and character of the dwelling-house, that larger area is required for the reasonable enjoyment of [the dwelling-house]1".

What does "required for ... reasonable enjoyment" mean?

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