Selling garden plot - PPR

Does obtaining PP, fencing off and selling separately remove PPR

Didn't find your answer?

A client (without our knowledge!) has cornered off part of the their garden (overall plot size below 1.2 acres) ans sold the plot with outline planning permission.

Under PPR rules the selling of the land would be exempt but I have read that the garden area should remain in use until the point of sale. This clearly isn't the case here. The client has separated it from the main garden, applied (and obtained) outline planning and sold to a 3rd party.

Where do we stand with PPR under these circumstances?

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Replying to Wanderer:
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By divelegend
18th Feb 2021 14:32

Thanks for the link. Similar to what I've been reading. Still not seeing definitive answers though.

This paragraph:

"This principle was illustrated in the case Mrs A Dickinson v HMRC, FTT [2013] UKFTT 653 (TC) where some initial development work started before exchange of contracts. HMRC argued that the land had been separated but, fortunately for Mrs Dickinson, the FTT accepted based on the facts in that case that the land remained part of the garden on the date of exchange."

Suggests that the FTT passed in favour of the taxpayer.

I can't find anything concrete either way.

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Replying to divelegend:
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By Wanderer
18th Feb 2021 14:42

As that case was decided upon by the facts have you read the facts of that case and compared them with the facts your case?
Might be an idea.
https://www.bailii.org/cgi-bin/markup.cgi?doc=/uk/cases/UKFTT/TC/2013/TC...

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