100% use of home - Antique Dealer

100% use of home - Antique Dealer

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I have a client who deals in Antiques. These antiques are distributed throughout his home and he is obliged to run dehumidifiers 24/7. He believes he was advised many years ago by a tax consultant that if he uses 100% of his home but no part exclusively, (concerning bathrooms/WCs etc. he does his thinking there) he could claim a proportion of his household expenses without affecting PRR, as opposed to the usual nominal "Use of home" claim..

Has anybody heard of this?

In a similar vein, I have a client who is a music composer, who would no doubt argue that he uses his whole house and definiteley including bathrooms and WCs. Any thoughts?

Lawrence Phillips

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By lawco
26th Jan 2008 09:48

100% use of home - Antique Dealer
Thanks, Jon & Chris.

Re. the dehumidifiers, these were just an example. The client is after claiming a proportion of other expenses on the basis that the house (which is a whopper, making the potential loss of PRR especially poignant) is his showroom as well as storage facility.

I believe I know the answers but given that he is pushing me on the basis of what the elusive "tax consultant" told him, obviously I have to offer to research further.

I need this in January like a............!!!

Any further comments will be appreciated.

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By User deleted
26th Jan 2008 00:24

Antique Dealer
First part : any additional expenses to running his home for business purposes is allowable : such as dehemidifiers. Thats all !!
Second part: No Chance! don'y even think about it!. If he has a dedicated room to persue his taxable profession he might be able to claim that percentage of the entire house upkeep.

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By Jon Stow
25th Jan 2008 17:48

Change of practice about a year ago
You need to read the Business Income Manual around here:
http://www.hmrc.gov.uk/manuals/bimmanual/BIM47815.htm
You might be able to claim the cost of the dehumidifiers plus a portion of household expenses without jeopardising PPR as clearly there is no exclusive business use of any part of the home. Whether you could claim all the dehumidifier costs when your antique dealer will have personal use in feeling more comfortable on a hot day is debatable. A fun question!

From memory, bathrooms and lavatories are excluded from area calculations as they are not used in the normal business sense, but for other business.

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