Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.

When dealing with someone working from home, it is important to note that although exclusive business use of part of the house may mean that it is possible to claim tax relief for more of the household expenses, it will restrict capital gains tax (CGT) relief on the sale of the house. This is discussed further in the Principal private residence relief ― anti avoidance guidance note.

Business rates are not usually payable where only a small part of the home is used for the business. But they may be payable where, for example, part of the property is separately used for business, customers visit the property, other people are employed to work there, or the property has been altered for the business. Council tax continues to apply to the domestic part of the property. The council tax