I appreciate this issue will have been raised many times before on Aweb but I am interested if anyone has direct experience of HMRC current view on this:
Small H&W owned Limited company providing (e.g.) writing services. The work is conducted pretty much full time at home. If the company spends say £25k creating additional workspace i.e. an office is it acceptable for the company to pay that expenditure which will almost certainly enhance the value of their home. Does it make a difference if the dirctors agree to repay the company in the event of the home being sold? The directors occupy the home office under an informal licence agreement whereby they pay the company £1,800 per year rent.