Claim VAT back on house renovation costs?

Hi all,

I am a sole trader (IT business) who works from home regularly. I am currently renovating my house, including the building of a new office space in the house. Could I claim the VAT back on the costs of building the new office space?

thanks

Rachel

On a similar vein,
I'm about to get my attic converted into a home office. I run my company from home and this is a pretty essential requirement now (the kitchen has been barred!!).
Can anyone advise as to what I can claim back in terms of fitout costs, etc?
Thanks!!

I looked into this a few years ago with a view to converting the garage.

1. If you work in a defined office area as opposed to occasionally working on the Kitchen (!) Table, you may become liable for rates. Rates arise from the carrying on of a commercial undertaking apart from the situation described above.

2. If you decide to write off the cost if a premises (including the VAT) and you later sell the premises as part of a house, I understand there is a "Hit" to be taken at that point in terms of the VAT not paid and the capital write off.

I didn't look into it further as I didn't proceed and my information above may be incorrect, but it shows that you don't get something for nothing.

ONQ.

Following onq theme:

- there is a distinction between fixtures and fittings
- if you do permamnent alterations to the house assumimg it is for or partially for business you could then have a CGT problem on disposal so often this is not recommended;
- on the other hand fittings are removeable and don't cause the same problem and you could claim the portion of VAT relating to business and capital allowances on the portion.