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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6331
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I have sold my house and will be renting for one year. Can I

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I have sold my house and will be renting for one year. Can I claim any percentage of the rent back against my limited company, which will be the address I rent at?
JA: When was the property or asset sold?
Customer: It will be sold, last week in August, renting property for 1 year, starting September
JA: Anything else you want the Accountant to know before I connect you?
Customer: No thank you

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Customer: replied 5 months ago.
Understood
Customer: replied 5 months ago.
Text answer would be great
Customer: replied 5 months ago.
How long will it take for a response to my question please?

Thank you for your question.

The expense has to be wholly and exclusive for the purpose of your business for it to be allowed for tax purposes. I don't see how you can justify claiming a percentage of rent against your LTD company expenses unless you use a specific room in the new property for business purposes only. In that case you could justify a percentage of rent based on covered area used for business purposes.

I hope this is helpful andanswers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 5 months ago.
Understood. Then for bedroom house, you could justify 25% of the rent as rebate, as one room is consistently used as office for Limited Company..Would you agree?
Customer: replied 5 months ago.
4 bedroom house..sorry

Thank you for your reply.

If one room is exclusively used for business purposes on a 24/7 basis then you can justify claiming a percentage of rent based on square footage. I may suggest that you consider for example 70-75% of the 25% on the grounds that the room may not be not used for 24 hours a day on business purposes.

I hope this is helpful and answers your question.

If there are no more issues, I will appreciate if you would kindly rate my service positively/accept the service I have provided to ensure I get credited for it by Just Answer.

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Customer: replied 5 months ago.
Many thanks and understood
Customer: replied 5 months ago.
I will rate the service now

I thank you for accepting my answer.

Best wishes.