[Brendan (chem2clean)]

Hi,i have made an offer on a house.House has a large garage connected to the kitchen,which is a extension.Its a flat roof,badly roofed,leaking.So if i get the house i am going to put a fibre glass roof .Now if i was going to convert the garage into a rug cleaning plant ;)can i use the cost as a company expense,as a tax write off?

[Mike Gwilliam]

The first question I would ask is how many rugs do you clean....inquiries etc to warrant using part of your house as a rug cleaning plant?

[Brendan (chem2clean)]

Hi Mike,even a portable plant,storage unit.Just interested if you can gain some tax relief.

[Mike Halliday]

He wants to replace his roof and claim it as a business expense ..... It's not really going to be a 'rug plant'

Yes you can,   but if you are investigated then be prepared to prove its true

[Brendan (chem2clean)]

Hey Mike,exactly....if i was to be audited no really hassle to come up a rug treatment plant..

[jasonl]

Yes you can claim it as a capital expense . I would not do it though because there is a risk that you will get caught up with capital gains tax @40% when you sell the house .

[Brendan (chem2clean)]

Hi jason,whys that because its then a commercial unit?

[jasonl]

There is no cgt on a private residence . However by claiming that part of it is  commercial you will become liable if you exceed the limit for gains .

[David Ware]

Yes you can claim it as a capital expense . I would not do it though because there is a risk that you will get caught up with capital gains tax @40% when you sell the house .

I'am of the same opinion as Jason on this. You could be liable for capital gains
David 

[Hilton]

Quite simply go and talk to a good accountant if you do not already have one get one as soon as possible.
There will also be rates implications as well no doubt.

[jasonl]

Yes you can claim it as a capital expense . I would not do it though because there is a risk that you will get caught up with capital gains tax @40% when you sell the house .

I'am of the same opinion as Jason on this. You could be liable for capital gains
David

You WILL  be liable , its a case of do you want to risk being caught years down the line .

[Brendan (chem2clean)]

Thanks all for your input,think its more hassle than its worth...

[jasonl]

As I see it it's worth having a home big enough to run your business out of instead of paying out to rent premises because eventually you can downsize and reap the financial benefits .

Unless you have a deposit to buy business premises and go down the sipp route as several chemdry franchises did in the 1990s and who are now millionaires through this scheme .

[Robin Ray]

You cant claim for the roof but you can claim for the area something toward the use of the garage also the electricity and water and heating the area.

[Tony Stewart]

Its £4.00 a week to use your home as an office which is allowable by HMRC....otherwise you will be liable for Capital Gains tax. Nice idea but many before you have asked this question and that is what HMRC have decided to allow. Using a garage or a single bedroom etc makes no difference to them. Beware of smart ideas, as if you trigger a tax  investigation you will think that you have arrived in hell.