Commentary

C3.1711 Partial business use of a main residence

Capital gains tax
Capital gains tax | Commentary

C3.1711 Partial business use of a main residence

Capital gains tax | Commentary

C3.1711 Partial business use of a main residence

If part of a dwelling house is used exclusively for the purposes of a trade or a business, or a profession or a vocation, the gain must be apportioned and exemption, if any, can be claimed only in respect of that part of the building which was not being used exclusively for those purposes12.

Note that HMRC ignores any minor residential use in determining whether part of the dwelling house is used exclusively for the purposes of a trade3. Examples of such minor use include:

  1.  

    •     a kitchen in the family home that is used to prepare food sold by the taxpayer as part of his trade

  2.  

    •     a doctor who keeps private possessions in a room used as his or her surgery

For a further discussion on partial business use, including worked examples on making the apportionment, see 'Splitting up the family home' by Malcolm Gunn in Taxation, 7

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial