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.
- English Company Owning Property in Scotland 178 1
- NI Contributions in order to claim state pension 260 5
- Lack of Quickbooks Online Coverage 341 6
- Risk Indicators Survey 126 1
- Closing down - who should buy whom? 656 32
- Deceased's Tax Return to date of death 46 1
- Jointly owned property 53 1
- Unpaid Fee's 597 10
- cold file reviewer needed 310 3
- SA302s - Lenders to accept non hmrc copies 921 17
- Professional Qualification 273 2
- Deferring taxable income until after 5 April 314 1
- Late Filing SA due to property income, individual was also a non dom for 15 years 183 11
- VAT margin scheme 148 11
- Auto-enrolment drivel 775 13
- We contribute a percentage of employees' salaries to a pension scheme set up by them - do we need to get involved in auto-enrolment? 205 3
- Company Dividends Received 151 2
- Is Corp tax payable on legacy received by bowls Club? 151 1
- Client information from previous accountant 476 8
- Question regarding A1 Form 178 1
- Possible Partnership? 530
- Lunatics in charge of the asylum - Bluestone 523
- Tax and accounting treatment on long lease granted from freehold 472
- New Fangled Penalties 329
- Clubs and Taxable Income 272
- Purchase of property freehold - capitalisation of costs 263
- Loans to other companies 207
- Closed PAYE schemes and auto enrolment 187
- Outsource Data Entry 158
- Challenging HMRC on EU VAT land related service 157