TAXATIONCapital gains tax - private residence relief - permitted area of land - to be determined objectively without regard to convenience or individual - requirements of taxpayerLongson v Baker (Inspector of Taxes): ChD (Evans Lombe J): 16 November 2000In March 1998 the taxpayer sold his property, a substantial dwelling house, outbuildings, stables and grazing land of 7.56 hectares.

The stables and land had been used by the taxpayer for keeping horses.

A substantial capital gain was realised, the land being potential development land.

The taxpayer's claim for private residence relief under s.222 of the Taxation of Chargeable Gains Act 1992 was refused in respect of the land exceeding that permitted by s.222(3) of the Act.

A special commissioner, having heard evidence from a district valuer, determined an area of 1.054 hectares to be allowable under s.222(3) and upheld an assessment to the tax in an amount of 560,000.

The taxpayer appealed.Alun James (instructed by Wilsons, Salisbury) for the taxpayer.

Timothy Brennan (instructed by Solicitor of Inland Revenue) for the Crown.Held, dismissing the appeal, that s.222(3) of the 1992 Act provided for a permitted area of land of 0.5 hectare or such larger area as the commissioner might determine if satisfied that, regard being had to the size and character of the dwelling house, that larger area was required for the reasonable enjoyment of it; that an objective test was to be applied to determine that issue, convenience or individual requirements of the taxpayer being immaterial; and that, accordingly, the commissioner, having applied the correct test, had been entitled to conclude that the area of land reasonably required should be restricted to 1.054 hectares.