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Chapter CG64819

Document Cited authorities 1 Cited in Related
Vincent
Published date12 March 2016
Record NumberCG64819
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

The statutory test in TCGA92/S222 (3) was considered in Longson v Baker (73TC415). Dr Longson claimed that land additional to the permitted 0.5 hectares which was used to house and graze his horses was required for the reasonable enjoyment of his dwelling-house. Although the District Valuer agreed that a larger permitted area should be allowed and suggested that 1.054 hectares (2.61 acres) was reasonably required for the enjoyment of the house, Dr Longson contended that all of the land purchased with the property, 7.56 hectares (18.68 acres), was so required, by virtue of the “equestrian character” of the property. He argued that the word “required” meant nothing more than “called for”.

However, both the Special Commissioners and the High Court found against the taxpayer on the basis that the test under s222(3) is an objective test. In his conclusion, the Special Commissioner stated that,

“The statute requires me to look at the dwelling-house and determine that area of land which is “required for the reasonable enjoyment” of the dwelling-house as a residence, having regard to “the size and character of the dwelling-house”. Accordingly I am not permitted to take into account the particular requirements of the owner of the dwelling-house: it is the house to which I must look and not the wishes, desires or intentions of any particular owner of the house.”

And Evans-Lombe J commented in the High Court

“It is clear from the words ‘‘required for the reasonable enjoyment’’ in subs (3), that the test to be applied as to what any larger permitted area can consist of over the 0.5 hectares allowed by the section, is an objective test. In my judgment it is not objectively required, i.e. necessary, to keep horses at a house in order to enjoy it as a residence. An individual taxpayer may subjectively...

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