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.
- Taxi Drivers Cost of Sale 138 3
- Digita Accounts Production Advanced - general perception 65 1
- Post AAT? 702 4
- Second Limited Company 136 2
- Bookkeeping Rate of Pay 2,674 38
- How to claim relief under a Double Taxation Agreement 292 6
- Tax implication on superannuation 183 3
- What's the Barmiest Reason A Client gave you for going? 2,556 25
- GRNI - Normal Balance 89 2
- Entrepreneurs Relief, and then new company 250 3
- Portuguese Resident having a UK Limited Company 223 8
- Tax Fines - HMRC 821 13
- Is Xero payroll as rubbish as I suspect it is? 1,298 24
- VAT - Check on clients business 913 37
- Digital tax accounts - what do we expect? 500 10
- Private doctors - Ltd company vs partnership 296 8
- Probate services 372 7
- Annual to At Least Quarterly 527 20
- trading losses allowable? 761 14
- Small amount of untaxed royalties for someone outside SA 167 1