High Clarity Accountants

TAX TIP OF THE WEEK – Using your home for work? Don’t be off by some of the Myths out there claiming that a tax deduction will mean you lose the CGT exemption on your home.

One of the effects of the Covid pandemic meant that working from has become more common. For this reason, you may wish to claim some of the associated costs of gas, electricity etc against your business or employment income.

However, you may have been told that using your home as an office will mean you lose the CGT exemption and will need to pay tax when you sell your home.

The legislation states that if you use part of your home exclusively for business then you will lose the proportionate amount of the exemption.

However, this can be easily avoided by ensuring that the office room is not used 100% as an office. For example, you could have a small couch or bookcase to store fictional reading books.

As long as you can show the space is not used exclusively for business you are unlikely to lose any CGT exemption.

Hope this was helpful, for lots more tax tips and strategies get a copy of our 71 ways to save tax checklist https://bit.ly/2YQbhvr

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