Reporting CGT on large grounds

[flatree]

Hi,
I have sold my principal private residence and it fulfills all the PPR relief criteria except that it has grounds of 0.9 hectare. I want to argue that the extra land is consistent with the size and character of the house and if they don't accept this that the extra land is worth only £10K as agricultural land and the CGT is within my annual allowance.

I do not know the best way to report this on my SA return. Do I:

(1) complete the CGT pages and enter the details into the Computation Working Sheet and calculate that my net gain is zero, transfer this amount to the CGT summary page and give a full explanation in box 37?

or (2) not complete the GCT pages at all (since I claim I do not owe CGT) but provide the full explanation in the "white space" box of the SA return?

Many thanks

[Peter D]

https://www.gov.uk/government/publicati ... lief-works

Deals with this. Regards Peter

[King_Maker]

In these circumstances, I always recommend obtaining a Professional Valuation - preferably from someone who is prepared to defend your case before HMRC.

[flatree]

King_maker do you think a valuation is necessary just for the extra piece land? The property is in a rural conservation area and the land would have to be worth £35K or more per acre before it impacts on my annual exempt amount. What kind of case do you think I might have to defend that would require a professional valuer? Could I not do this as a non-professional or is there something I am missing here? What is a worse-case scenario?
Thanks

[King_Maker]

It depends how confident you are in your estimate of £10,000 for the excess land.

You will need to do an estimate of its value on acquisition also.

It will be necessary to notify HMRC that estimates are being used - this is likely to mean HMRC will want more details.