Pre-owned land

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

Pre-owned land

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
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This guidance note considers the pre-owned asset tax (POAT) as it applies to land, where an individual has made a gift of land, or funded the purchase of land, from which they now benefit. It applies to disposals after 17 March 1986.

For discussion of the regime generally, see the Pre-owned asset tax overview guidance note.

Land includes buildings, and the asset may well be a domestic residence ― for example, the family home.

The conditions

The residence and domicile conditions

In order for the POAT to apply to the individual for any tax year, they must be resident in the UK during that year, see the Residence ― overview guidance note.

Where the individual is UK resident but is domiciled outside the UK (before 6 April 2025), or is UK resident but is not a long-term UK resident (6 April 2025 onwards), the POAT applies only if the asset is situated in the UK.

Before 6 April 2025, any property in an excluded property settlement (that is, property outside the UK settled by a non-domiciled settlor)

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  • 02 Sep 2026 11:50

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