Commentary

V7.440 Input tax—domestic accommodation

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.440 Input tax—domestic accommodation

Part V7 Tax planning | Commentary

V7.440 Input tax—domestic accommodation

In general terms, no input tax can be reclaimed on expenditure relevant to domestic accommodation. For example, the managing director of a London company cannot buy a luxury apartment next to his office, and claim input tax on all of the fixtures and furnishings on the basis that it is important he lives close to his main place of business.

However, there are circumstances where input tax can be recovered.

  1.  

    •     Sole proprietors and partners – where the owner of a business clearly allocates one part of his house solely for his business, eg third bedroom used

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