27/02/2024
Accountancy Expertise – here to answer your questions to help you run a successful business.
We'll be posting frequently asked questions and answers. Can’t find the answer to a question you're looking for? Get in touch at contact@carringtonaccountancy.com one of our expert accountants will be happy to help.
We would like to add an extension to our house which we will use as an office. Can we expense the cost of the extension through our limited company and claim tax relief on the cost of the build? Can any of it be expensed as it will be used ultimately for office space?
An extension to a house owned by a director must not be charged through the company as this would jeopardise the capital gains tax free status of the property.
There are things that can be claimed though;
VAT can also be reclaimed on these items.
You should also be aware that HMRC require any room in your home that is being claimed as an office to also be used for personal purposes. That could be personal storage or sofa-bed for guests – anything so that it is not 100% business use. If it was 100% business use that can also disrupt the capital gains tax free status.