Is council tax allowable for a B&B

Is council tax allowable for a B&B

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Just wondering whether a proportion of council tax is an allowable expense for a B&B.

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By eastangliantaxadvisor
25th Aug 2012 09:14

HMRC gudiance is clear:-

 

http://www.hmrc.gov.uk/manuals/bimmanual/BIM46840.htm

"In the main, the person who is carrying on a trade, profession or vocation will pay non-domestic or business rates. The existing instructions at BIM46835 apply. There will however be exceptions. For example, bed and breakfast establishments with fewer than six tenants do not pay the business rate. And a home in which a trader sets aside a room as an office is likely to attract only a council tax charge.

Thus whether premises to which the council tax is applied are used for business purposes should be regarded as a question of fact. If business use is established the appropriate proportion of the tax may be allowed under the normal rules for the deduction of expenses."

Sp in other words, what is the proporation that relates to the B & b part?

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