The apportionment of sale proceeds between a house and adjoining land by the taxpayers was held to be in the correct amounts for the purposes of establishing the amount of private residence relief available on the house.
Summary
The ‘just and reasonable’ apportionment of sale proceeds between a house and adjoining land by the taxpayers was held to be in the correct amounts, for the purposes of establishing the amount of private residence relief available on the house under TCGA 1992, s 222.
Background
The appellant taxpayers sold a house with adjoining land for development in June 2006. HM Revenue and Customs (HMRC) issued a determination to the taxpayers, apportioning the sale proceeds of £725,000 as to £170,000 for the house and £555,000 for the land. The taxpayers appealed, on the grounds that the correct apportionment should be ;
