Myself and my husband had a small business from home. We also had full time jobs at the the same time as this was only a sideline business.We stored the stock for the business in the garden shed with other household items and some stock in the house. We offset a portion of our household telephone and light and heat against our taxes. We neverused our home exclusively for business. We wish to know if we sold our home would we have to pay capital gains tax and would the fact that we claimed the above expenses affect this.
1. Firstly, the fact you claimed business expenses relief in relation to part of household telephone light heat etc is not determinative of the issue of whether CGT is payable when you sell your home. What determines the issue is whether there has been part of the house which has been used exclusively for business purposes. If there has been part of the house used for business purposes, then an apportionment has to take account of what proportion of the house was devoted to business purposes. However, where all parts of the house remained at all times mixed use, both business and private residence, then full principal private residence relief from CGT is applicable. Here, the fact your garden shed remained mixed use, storing both business and household items for example would mean that it would fall within the principal private residence relief which extends to one acre of grounds and outbuildings associated with the house.
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