Using Limited Company to do up a house

M

Mumha

Guest
Hi

I'm a computer contractor and have a limited company. I do a lot of work from home (increasingly so) and I would like to convert the attic into one large open space where I could have my office (of course the added benefit is that is adds an extra bedroom). Does anyone know if I can claim this as a business expense (or any part of it) ?
 
Tread carefully with this one as there may be Company Law (directors loan) implications as well as tax implications if it is deemed that the company has effectively subsidised improvements to your house. Certainly it would be difficult to justify structural changes to the house as being a business expense as the cost of buildings are not tax-allowable against business profits. There may be a case for claiming some furniture and fittings as business expenses but do take appropriate professional advice on it.
 
And of course, if your house is your office, you will be liable for (some) capital gains tax when you sell your house.
 
You may also need alternative insurance cover to a normal owner occupied buildings/contents policy and you may need to inform your mortgage lender that you are conducting a business from the premises.
 
Thanks for the replies. I think I will stay clear of the renovation side of it but would be alright on the kitting it out side.
 
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