Re: FN-FORUM: income tax (uk)

date posted 8th January 2008 13:54


On 8 Jan 2008, at 14:49, Anthony Cartmell wrote:

>
>> The downside of doing this AIUI relates to the possibility of your
>> local council slapping a business rate on the portion of your house
>> used as an office, and the possibility of capital gains tax being
>> applied when you sell, as part of the property was commercial in
>> nature.
>
> The advice I got from the local tax office course was that unless
> your business caused local nuisance the local authority wouldn't be
> likely to want to charge business rates. When selling, if the office
> could only be an office then it might be a problem, but if adding a
> bed makes it a bedroom then probably not an issue. I think they said
> that if your office was in fact a bedroom, you couldn't claim for a
> percentage of heating and lighting as expenses for an office...

Which explains why I never converted the garage into an office, and
I'm not bothering claiming for my 10x10 space upstairs....

(yes I do work from a bedroom....)