Readers' forum : Garden and gain

My client has disposed of a substantial private residence. This was her only residence throughout its ownership and all the other conditions for capital gains tax only or main residence relief are satisfied. The house has a garden of well over an acre. However the grounds are all part of the property – there are no separate fields or anything like that. I feel the grounds would meet the permitted area test because they are all used for the reasonable enjoyment of the home. Consequently I am confident that the whole of the gain is exempt.

My client says that because the whole gain is exempt she does not need to make any entries on the tax return about the disposal. She thinks that if she does HMRC will enquire into the return and although she has nothing to hide she does not want...