From: "Alec" 
Newsgroups: uk.finance
Subject: Re: Claim tax relief on use of flat
Date: Tue, 27 Jan 2004 00:23:50 -0000


"Fred"  wrote in message
news:401562b5$0$223$fa0fcedb@lovejoy.zen.co.uk...
>
> "Ronald Raygun"  wrote in message
> news:qc9Rb.249$ms3.2748419@news-text.cableinet.net...
> > Fred wrote:
> >
> > > "Ronald Raygun"  wrote in message >
> > >> It would be unwise to claim a share of maintenance, council tax,
> > >> and mortgage interest unless there is a defined proportion of
> > >> the total space which is exclusively used for the business,
> > >> but if you do that you may lose some of the Private Residence
> > >> Relief entitlement against CGT when you sell the place, and
> > >> it may make you liable for business rates.
> > >
> > > Is it wise to claim a proportion of rent as a business expense?  Where
> > > part of a room is used for business purposes?
> >
> > No reason why not, if you are in fact renting the premises, since
> > if you don't own them, there can be no CGT implications because
> > you can't sell them.
> >
> > If you own them, you can't "rent" them to yourself, as that would
> > also be non-private use.
> >
>
> Many thanks.  I'm using the dining area of a combined lounge/dining room
as
> an office.  I assume because it is only part of a room mainly used for
> residential purposes, business rates are not applicable.  What sort of
> percentage of the rent would be seen as reasonable since during the day
the
> bathroom and kitchen are also used when working.  It is a 3 bedroom house
> and I am employed (director) of a Ltd company.
>
>
Usually 25% is accepted by Inland Revenue without question.

Alec