Are repairs to garden office allowable expenses

The garden office is owned by the individual, not his limited company.

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Individual is a contractor using his garden office for his consulting business.
Private use is incidental.
He owns the office.
He does not charge rent.
He claims/charges the flat rate allowance in the Coy accounts.
He is the sole Director, but not an employee.
The office was built before structures and buildings allowance (29-10-2018).
The structure badly deteriorated due to water ingress and he has paid £14,121 (no VAT) for repairs.
It was an expensive "pod" when first built. This is genuine repairs apart from an amount to be apportioned for some improvements to the drainage to prevent recurence.
Given that, he owns the pod, and he charges the flat rate use allowance, can he claim any of the repair expenses in the CT return?
Many thanks.
PS  The subject of PPR CGT relief always arises so there will be a minimal "personal use" reduction.
PPS. Are there any BIK considerations arising from claiming some of this expense.

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DougScott
By Dougscott
26th Apr 2024 16:50

That's not the way I'd arrange things to get maximum benefit. I'd either rent the garden office to the company at a reasonable market rate on a full repairing and maintaining lease or I'd sell the garden office to the company. Anyway as it is, provided that the company actually pays for the repairs and the garden office is used practically all the time for company business, then I would claim the lot if they are genuine allowable repairs.

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