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Monthly Archives: July 2012

Does working from home affect CGT?

Working from home as a freelancer or contractor is an increasingly popular way of working but could working from home and claiming a deduction from your income tax bill for the costs i.e. the heating and lighting cause you a problem with CGT if you sell your home at a profit.

If part of your home is used exclusively for business then you will lose part of your CGT exemption the key is for part of it to be non exclusive.

To do this make sure that other members of your family use the room for non business purposes i.e. allow them to use the computer for personal email, and keeping up with personal paperwork so that no part can be said to be exclusively for work.

Also if you are caught by CGT do not forget that you will have your annual CGT exemption meaning that no tax would be payable