Just converted my garage into a reception area for meeting clients instead of having them come into my main lounge area which disrupts the family.
The conversion cost is£6500 plus furntiture and fittings £1000. I intend to claim 15% for business use only, as capital expenditure and claim 25% WDA on furniture at 15% private.
What rate of CA do I use for the conversion cost? Or is this treated as plant too? There will be a TV in there as well to show the room is being used for private purposes also.
Property is 3 bedroom freehold.
Thanks for any assistance.
Tony Lawrence
Replies (3)
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hmm, .....
...if by conversion you mean building works / allterations, this could be pretty difficult to translate into CA under CAA 2001?
You need to study statute and case law definitions/decisions as against your building works / builder invoice in detail.
Is it worth it in any event? For only 15% business use - in sense that HMRC would argue the toss very hard (whatever you came up with) if the matter arose in review. Not to mention fact that it has a knock-on efect on PPR CGT (albeit almost certainly negligible, but again it could give rise to hassle factor disproportionate to any advantage you may get). All this for say absolute max £400 (almost certainly much less) (and over many years !!) saving assuming you are HR taxpayer? Not turning my nose up at £400 as such, but some machinations to go through to get it (or much less in all liklihood).
mixed answer
i would not in my opion claim capital allowances on any of the £6500 conversion costs for capital allowances due to problems that may arise latter due to CGT problems it may cause at a latter date if you sold your house.
all being well you have may already increased the value of your home if you have done it correctly and will get your return on your expenditure at that point !
by all means claim on items like furniture that you have in your office as these are for business use ............., would you have an office desk taking up space in your main home if you did not need it for business use etc !