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Post Info TOPIC: Use of home for business
Zigs


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Use of home for business
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Does anyone know what charge is acceptable for use of home as business use, without their being any implications for CGT.

 

A client is using their home to run their business and their previous accountant totalled all gas/elec/mortgage etc and charged a percentage of it to business expenses, however i believe that this would have implications for CGT if the property would be sold from HMRCs point of view

 

 



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kjmcculloch83


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Capital gains tax is only an issue if the room is used exclusively for business. Even so if you do make a capital gain it's only on the portion of the house used for business. I believe the allowance this year is still £10,100. £20,200 if its a house in 2 names. What are the chances of the value increasing by that?

Have a look at bkpr.co.uk under guides you'll find a guide called using your home as an office. It explains a bit more.

Kris

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Wella


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It also becomes an issue, as you have said the business is paying the mortgage.

Normally use of home excludes mortgage repayments, council tax, and water rates. As these would be paid with or with out the business use.

Bill



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kjmcculloch83


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I certainly include mortgage interest but not the capital payments which would get round the business paying the mortgage. I also include council tax (water is still unmetered here)

Kris

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RuthA


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Here are some examples on the HMRC website that can be quite helpful:

http://www.hmrc.gov.uk/manuals/bimmanual/BIM47825.htm

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Zigs


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thanks guys



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gbm


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The CGT (and business rates) issue gets bandied about a lot, but in the vast majority of the cases, it shouldn't be an issue.



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