C3.1703 PPR relief for garden or grounds
The PPR exemption applies in respect of a disposal of, or of an interest in, land that the taxpayer has for their own occupation or enjoyment with the residence as its garden or grounds up to the permitted area (defined below)1.
What is meant by garden or grounds for PPR purposes?
HMRC considers that, in the absence of a statutory definition or judicial authority, the words 'garden' and 'grounds' bear their everyday meaning. Whether a piece of land can be so regarded is a question of fact. HMRC has stated that the word 'garden' means 'an enclosed piece of ground devoted to the cultivation of flowers, fruit or vegetables', whereas 'grounds' is a broader term to cover enclosed land surrounding the residence and in the same ownership as the residence provided it issued for the purposes of ornament or recreation only. For both 'garden' and 'grounds' HMRC mentions that the land must be 'enclosed', but it is suggested that this is simply because the dictionary definitions to which HMRC refers mention this, rather than there being a strict requirement for the land to be fenced off2.
HMRC takes the view that land is not grounds if it is3:
• used for agriculture, commercial woodlands, trade or business, or
• fenced off land to be sold for development, or
• any other land used for purposes other than ornament or recreation
Paddocks or orchards may qualify if there is no significant business use. Land with a building
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