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Paddocks and meadows with main residence

15 September 2020 / Julie Butler , Fred Butler
Issue: 4760 / Categories: Comment & Analysis
Horse sense

Key points

  • Only half a hectare of grounds will qualify for only or main residence relief.
  • Land used for a business may be eligible for rollover relief.
  • Grazing income from livestock can mean that land qualifies for agricultural property relief.
  • The Hyman case shows HMRC may contest claims for the mixed-use rates of stamp duty land tax.
  • Arguments for mixed use are easier if the house and grounds are divided clearly.
  • HMRC may highlight any failure to bring the newly acquired land into immediate commercial use.

It could be argued that it is the dream of a large number of people to own a paddock next to their house however there are many tax considerations to take into account before making the dream a reality.

Only ‘half a hectare’ of character appropriate grounds will qualify for only or main residence relief under TCGA 1992 s 222. When buying...

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