You may still claim a garden for private residence relief beyond the threshold where it can be shown that the additional land is required for the “reasonable enjoyment” of the property.

When assessing this, the following are relevant:

• the size and character of the dwelling;

• how much of that dwelling was used as the owner’s residence;

• whether the extra land was required in the context of the property (for instance in a rural setting more land might reasonably be required compared to an urban home).

Be aware this is a facts-and-circumstances test and the burden is on demonstrating that the larger area is part of the home’s enjoyment rather than simply extra land.

What happens if part of the garden is sold separately or the home ceases to be the main residence?

If you dispose of part of the grounds separately from the house, you will need to check whether that part still qualifies as a garden for private residence relief.

For example, if you sell off a portion of the land and retain the dwelling, HMRC may argue that the land sold was not required for the reasonable enjoyment of the residence.

Moreover, for PRR to include the garden at the date of disposal, the land must still be “held with the residence as its garden or grounds” at that date.

Land sold after the disposal of the residence will not automatically qualify.

Updated rules for 2025/26: what you need to know

Here are key updates for the tax year 2025/26 relating to PRR and a garden for private residence relief:

• The HMRC helpsheet for 2025 confirms that the final nine months of ownership are deemed residence for relief in most cases, assuming other conditions are met.

• The CGT allowance for 2024/25 was reduced (for example) and there have been updates to CGT rates; as this year progresses you should check the exact annual allowance and rates applicable for 2025/26 as they may change.

• Letting Relief remains very restricted: it is only available if you were in shared occupation with a tenant. The presence of a garden for private residence relief does not override the restriction if letting occurred.

• The permitted area threshold of 0.5 hectares still applies but HMRC’s view on “reasonable enjoyment” remains firm; larger gardens must be justifiable.

• Where part of the garden is used exclusively for business purposes (for example a separate commercial outbuilding or landlet), that portion may be excluded from the garden for private residence relief.

In short, the fundamental rules remain (garden qualifies if enjoyed with the home and within permitted area or justifiably larger), but you must review your position carefully under the latest guidance.

How the team at Trueman Brown can help

If you are considering the disposal of a property and want to check whether your garden for private residence relief qualifies (or how much of the grounds may be covered), our team is able to help you navigate the complexities.

At Trueman Brown we can assist with:

• Reviewing the size and character of your garden/grounds in relation to your dwelling;

• Calculating how much of the gain might be sheltered under PRR including garden eligibility;

• Advising in circumstances where you have sold part of the land, used part of the garden for business or changed residence;

• Preparing the supporting calculation and ensuring your claim is correctly made for the 2025/26 tax year.

For specialist tailored advice, please contact us:
Email: mark@truemanbrown.co.uk
Phone: 01708 397262

Frequently Asked Questions (FAQ)

Q1. What exactly counts as a “garden for private residence relief”?
A1. In broad terms it is the land “enjoyed with the property” on the date of disposal that is the garden or grounds of your main residence and falls within the permitted area (or qualifies as reasonably required for enjoyment beyond that). The home must have been your only or main residence for the relevant period.

Q2. If my property’s grounds are more than 0.5 hectares can I still get relief on the garden?
A2. Yes — but you must show that the extra land was required for the reasonable enjoyment of the property and formed part of the residential occupation. The garden must remain part of the dwelling’s enjoyment.

Q3. What if I sold a portion of the garden separately from the house, does that affect my relief?
A3. It can. If you dispose of some of the land separately, HMRC may argue that the land sold was not required for the reasonable enjoyment of the residence and it may fall outside the relief. The timing of disposal is important: the garden must still be held with the residence at disposal for the garden relief to apply.

Q4. Does the garden for private residence relief rule apply even if I didn’t live in the property right up until disposal?
A4. Yes, provided other qualifying conditions are met the last nine months of ownership are treated as though you lived there for the purpose of PRR (and thus your garden may still qualify). However, if you moved into care or meet certain other conditions, a longer period (up to 36 months) may apply.

Q5. What do I need to provide to claim relief on a garden?
A5. You should retain: details of the land area, boundaries and usage of the garden/grounds; evidence of when the property was your only or main home; accounting for any business use; and if larger than permitted area, a rationale for why the extra land was needed for the property’s enjoyment. Then you claim PRR (including garden) on your self-assessment tax return or CGT summary pages.

Q6. Has anything changed for the 2025/26 tax year regarding garden eligibility?
A6. The core rules are unchanged (0.5 ha threshold, “reasonable enjoyment” test, last nine months’ deemed occupation) but you should check your circumstances against the most recent HMRC guidance (HS283 helpsheet updated April 2025) to ensure compliance in 2025/26.

If you would like to discuss your specific property scenario in more detail — especially the garden element — do feel free to get in touch using the contact details above.