The sellers of a local estate sold the family homestead and made a substantial gain. We were of the view that significant elements of the property qualified for main residence relief, the tax exemption afforded to a family’s only or main residence.
By Phil Kinzett-Evans
The site included several subsidiary dwellings, formal garden and grounds, and some woodland used by the family for residential purposes.
Overall the treatment we applied yielded a low tax bill relative to the size of the transaction, and we were able to protect a Private Residence Relief (PPR) claim of several million pounds for our clients. HMRC did not express an immediate view, but checked our computations were accurate.
With residential rates of CGT applied at 28%, our tax team ensured the family did not have to pay hundreds of thousands of pounds in unnecessary tax.
The case was closed without amendment, with minimal fuss and expense to the family. Proof that doing the work properly in the first place is a worthwhile venture!
Using the services of an experienced tax accountant can make a huge difference to your final tax bill when selling property, and to the time spent with HMRC if you get it wrong. Get in touch if you’re looking to sell your family home or other property and wish to minimise your tax liability legally.