CGT & Business Use of Home
It was instilled into me long ago that a room completely set aside for business purposes still retained the Principle Private Residence Relief if personal possessions were kept in that room, eg. television, books, stamp collections etc.
On trawling through the HMRC Capital Gains Manual, I came across CG64663 - "Private residence relief: part of house used exclusively for business." Within that section is the following paragraph: "But occasional and very minor residential use should be disregarded. For example, if a doctor keeps private possessions in a room used as her surgery the surgery should still be regarded as exclusively in business use."
Would actually watching the TV or reading books be deemed to be "occasional and very minor residential use"?
I have a client who works from home and about 2/3 (two-thirds) of the rooms in the house are used for business in one form or another, whether it be for meeting and greeting customers (yes, there is appropriate insurance in place), storing documents and office equipment or physical working areas. The client claims the usual expenses involved in working from home duly restricted by 1/3 (one-third) private use.
Since each room contains personal possessions, to my way of thinking this means that 100% PPR should be available. Now I am not so sure.
I should be interested to know if anyone has encountered application of this section and the outcome or indeed has any practical suggestions so as to ensure that the PPR is retained in its entirety.
- Sage Instant Accounts Complete De-install problem 267 10
- Love is in the air 577 7
- Personal Pension Relief in the Tax Code 175 2
- Auto enrolment confusion 2,048 47
- CGT on lost shares/scam 372 4
- Setting up a practice 418 5
- Very large share capital by mistake 524 7
- VAT refund if only output tax on first claim 486 4
- 24 month rule and expenses 307 1
- HP agreement in Directors name but payments under company 660 17
- Stamp Duty 298 4
- Physiotherapist and vat and agency work ( one for Les Howard???) 239 4
- I am 34 years old, am I too old to start a career in Accounting ? which is the best way to pursue it 1,816 21
- Another Sneaky Tax Hike! 618 5
- Incorporation of gp practise 301 1
- Client Paperwork Retention? 583 13
- Paid staff their normal salary instead of SMP 589 7
- Tax Overlap Reporting 408 4
- Pay rise - how to enter in Moneysoft 403 9
- Reimbursing director travel costs 462 6
- DTA tie-breaker issue 304
- Tax Implicatins on a Directors Loan 294
- CGT for NOn UK residents 281
- Employer's pension contribution - need to be PAYE registered? 278
- What are the tax implications of overseas sales through a UK based company? 256
- profit or loss on furnishings and deed of trust 241
- Apprenticeship Levy 240
- Tenants in Common - Actual % split not written down 225
- Discretionary payment to sick employee 222
- Capital Gains personal representatives 221