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No, as this would be your primary residence you would not have to pay CGT
I assume you dont pay business rates but Council Tax.
So its classed as a dwelling and you would not be liable
Taxable allowances and expenses are different from CGT
Can I clarify anything about this today please?
Alex , thanks advice. The HMRC site does say that if part of a dwelling is used exclusively purposes then on that portion one is liable . So my question is knowing the size of the flat and the way I use it could the HMRC still claim CGT? Also I'm keen to know your view as to the proportion of 50% of the costs of running the flat claimed against tax business. I'm about to send in my return online tonight. Thanks
Alex, I need to submit my tax forms in 15 minutes. I don't believe you have quite answered the specifics of my question as yet. Thanks
The answer is no. You use it (like many people do) as a home office
This is not used exclusive and thereofore not liable
Does that help?
You can claim a portion of the expenses as buisiness
when you work out the sq meter of the property, then divide that by the portion of your home office, that is what you can claim expenses against.
So if it works out to say 20%, then you can claim 20% of interest payments on mortgage, heating, electric etc
But not more than that.
Given the small size of the flat I effectively use the whole flat all the facilities are used and living so I will claim 40%. The studio room is only 14 feet x 11 feet. Is this unreasonable?
Yes but it is a home office. I think 40% and you are asking investigation which you want to avoid
I think anything more than 15-20% and you would be pushing it
Yes, thanks detailed advice. That is your considered view and I should not push it. That's what I wanted. I think that's all I need. Thanks again. Richard