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PPR relief is available not only on the sale of the main residence but also on the sale of the garden that attaches to the main residence.

To qualify for relief the land must meet the following conditions on the date it’s sold:

• It must be occupied and enjoyed as the garden of the residence. Whether a particular piece of land can be regarded as garden or grounds must be decided on the facts of each particular case.
• The area of land must not exceed the permitted area. The permitted area includes the site of the residence itself as well as the garden. Capital gains legislation defines this as 0.5 hectares. A larger area of garden may be permitted where the larger area is required for the reasonable enjoyment of the residence, having regard to the size and character of the residence.

The order of sale can be important if the house and gardens are not sold together. The land can only qualify for relief if it is the garden or grounds of the home at the date of sale. If the owner sells off part of his or her garden, while continuing to live in the house, the part sale of the garden will qualify for relief.

By contrast, if the owner sells the house and some of the garden, but retains ownership of the remaining part of the garden, relief will be available for the part of the garden that is sold with the house. However, there will be no relief for the subsequent sale of the retained part of the garden as at the date it is not held together with the residence.