CGT on PPR sale when business was run from home

[mct1]

We are planning to move house soon, and I found some posts on this thread very interesting regarding CGT exemption where a business has been run from home. https://www.askaboutmoney.com/threa...-expenses-for-business-on-for-form-11.202602/

I ran a part-time business from home for 16 years until 2013. There has always been a piano in the room which I played (nothing to do with the business), and we put camp beds in there when friends with children stayed. My computer had numerous other uses. So the room was not used exclusively for business.

My spouse has run a limited company from by far the smallest room in a 9 room house (excluding kitchen and bathrooms) for 20 years. He's been winding the business down so does little actual business in there these days, and uses the computer for a myriad of activites and hobbies. It is very much his "home office" as well.

We both claim(ed) a reasonable proportion of heating/phone etc as business expenses.

After reading the thread I linked, it seems that my room could be exempt from business use CGT on the house sale as the room was also used for personal activities. I’m less sure about my spouse’s room. Will his limited company status raise an flag? What do you think?

 

[T McGibney]

If you end up selling, and you're sitting on a gain, get professional advice.

It's not a matter of raising flags but getting it right.

In retrospect it was probably a bad idea to claim proportion of certain domestic costs as business expenses although this shouldn't necessarily prejudice your claim to PPR relief depending on your circumstances.

 

[mct1]

Thanks. There will certainly be a gain, and yes, we will get advice. Looking for a new accountant/tax adviser at the moment as our last recently closed her business.

The phones were always separate business lines so it was just fuel costs that were shared, and the CGT implications weren't spelled out when we started claiming. I suppose we also thought we would be staying here for ever. Recent health events for us both have changed our perspective on future planning.