CG64860 - Private residence relief: permitted area: Valuation Office Agency (VOA)

You will need to ask the VOA to determine the extent and location of the permitted area where the garden and grounds of the residence exceed the statutory permitted area of 0.5 hectares set by s222(2) TCGA92 (see CG64815 and CG64818) in two circumstances:

  • Where there has been a disposal of the whole residence, together with its garden and grounds, and the owner contends that the permitted area should exceed the 0.5 hectare limit set by s222(2) TCGA92.

or

  • Where there has been a disposal of part of the garden or grounds and the owner contends that some or all of that part falls within the permitted area.

If a report to the VOA is required you should,

  • Advise the taxpayer that you have referred the matter to the Valuation Office Agency for advice, and
  • Make a report to the VOA in the form set out at below.

Form of report to VOA

You should consult the VOA by memo which should be headed, ‘Private residence relief; determination of permitted area’.

Your memo should include the following:

  • Details of the disposal which has taken place, the date of disposal, the area involved and the disposal consideration.
  • If the disposal is part of the garden or grounds, a plan showing the part disposed of and the part retained.
  • A copy of the Capital Gains Tax computation if one has been provided.
  • Details of any valuations and apportionments used in the computation.
  • The taxpayer’s opinion on the extent of the permitted area.
  • A full description of the house and other buildings on the land together with details of the use made of those buildings.
  • Your decision on the entity making up the dwelling-house and the taxpayer’s opinion on the entity if it has not been agreed.
  • An explanation of what part of that dwelling-house has been used as the taxpayer’s residence and the taxpayer’s opinion on the extent of the residence if it has not been agreed.
  • A full description of the land held with the residence together with details of the use made of that land.
  • Your decision on the extent of the garden and grounds of the residence and the taxpayer’s opinion on the extent of the garden and grounds if it has not been agreed.
  • If there has been a sale of part of the gardens and grounds, your view on whether there is evidence that that the part disposed of was not required for the reasonable enjoyment of the dwelling-house as a residence, see CG64832.

The VOA should be asked to provide an informal opinion of:

  • The extent of the permitted area for that disposal, or if there is more than one disposal, for each disposal
  • The location of the permitted area for each disposal
  • Any necessary valuations, see CG64895
  • Any necessary apportionments between exempt and non-exempt areas, see CG64899, together with an explanation of the basis of the apportionment.