Q: If I worked from home in a spare bedroom on a computer trading foreign exchange virtually and there would be no visitors to my home, no deliveries, and no post to do with the work as statements sent via email, would I be liable to pay business council tax?
Nov 23 2011
Answered by: Clive Lewis Ask a question
This is very much a case of the specific circumstances of the parts of the house used as an office. Among the issues which the Valuation Office will take into account are:
· The extent and frequency of the non-domestic use of the room
· Any modifications made to the property to accommodate that use
· Whether the character of the room remains as domestic living accommodation
· Specific furniture and equipment in the room
The valuation office has a website. Each case is considered on its own merits, and normally a member of Valuation Office staff will visit the property to check the facts before an assessment is made for non-domestic rates. If you require any further guidance on this subject, contact the Valuation Officer responsible for your area. Details can be found under the Valuation Office website here.
Working from home also has tax implications. Some expenses are allowed as a deduction against profits. HMRC has information here.
There may also be capital gains tax implications arising from running a business from home. In the sale of your primary residence is normally exempt from Capital Gains Tax (CGT). However if part of the premises is used as a business premises a proportion of any gain may be chargeable to CGT. The Direct Gov website is a good place to start for further information.
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