Home office and PPRR

S

Scouser

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I’m a company director and work from home, can my company purchase a garden office and claim VAT back on the works? It’s going to be a small garden room at about 3M * 3M and will be used solely as my office. Will it affect Principal Private Residence relief if I sell the house down the line? Is there a cut-off point, say I stop using the office business, would I have to 'sell' the building back to myself if I wanted to use it personally?
 
Why make life complicated for yourself?

Build a nice garden room which will add value to your house. If you use it for business purposes fine, but keep it financially separate.

Brendan
 
Thats an option alright, the company paying for it and claiming VAT appeals though.
 
The company pays for it.
The company claims wear and tear on it in the tax returns for the next few years.
Your exemption from CGT for your PPR could be questioned.

It sound very messy and complicated.

If you were building a prefab which could be moved, there would be sense in it.

But trying to build an extension to your house and getting your company to pay for it, is not a good idea.

Brendan
 
It will be either a Steeltech shed or log cabin so effectively easily removed
 
I don't see a problem with this. It doesn't sound like the shed will be attached to the house so I don't agree with other posters that it could affect PPR. The shed would be a company asset and nothing to do with the principal private residence. If the company winds up, yes you have to sell it to yourself at market value and charge Vat if you want to do a voluntary strike off but in the meantime, yes the company claims back the Vat on the purchase and claims Capital allowances. What's wrong with that?
 
If the shed is located on the site of the house then at least in part the property is no longer exclusively your PPR.

If you are conducting business from the property, are you liable for business rates.
 
OP should do nothing here without proper professional advice. Too many tax pitfalls, each of which can be readily avoided with a little planning. Claiming back VAT on any additions to one's home is a recipe for bother.
 
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