Selling land after main residence

If you are selling part of your main residence's grounds after you have sold the property you could run into problems in qualifying for principal private residence relief. This could occur if for example you are planning on retaining part of your garden after you sell your house to sell seperately. To qualify for the CGT relief land must be held together with the residence at the date on which it is disposed of. So land which is disposed of separately before the disposal of the residence may qualify for relief, if the other conditions are fulfilled. Land which is disposed of separately after the disposal of the residence cannot qualify for relief. This is based on the case of Varty v Lynes . In this case the property owner sold a house while retaining part of the garden, which was disposed of later. The High Court found that no relief was due on the later disposal because the tests above were to be applied at the date of disposal of the retained land. At that date it was no longer land which he held with his residence as its garden or grounds and so PPR relief could not be due.