CG64807 - Garden/grounds: permitted area: identifying cases

The taxpayer who has more than the automatically exempted area, see CG64815, together with a residence may rely on their own opinion that full exemption is due and fail to mention the fact in their return (if any) of the disposal. Local knowledge or other available information, for example, a particularly large sale price, may in a particular case suggest the possibility that part of the gain may not qualify for exemption and so warrant enquiry.

Without the benefit of planning permission garden land may be of little value. Inspectors should not pursue enquiries where the area of garden or grounds only marginally exceeds the automatic limit set out in CG64815 and the gain accruing on the non-exempt land is likely to be small.