Converting Barn for Office Use

by **nigelsmith** on Mon Aug 22, 2011 4:21 pm

I am in the process of converting an out-building for use solely as an office. The external walls are in sound shape and we have erected a timber internal frame to then insulate, plaster board and then plaster. The electrics have been upgraded and work completed to create a new door, window and water/drainage for the toilet.

Question - as a limited company (my office is home based) where can I seek advice on what elements of this conversion I can claim back through the business. Thanks, Nigel

by **section 44** on Mon Aug 22, 2011 4:31 pm

Who owns the barn? If it isn't the company then does (or will) the company pay rent and, if so, a rack rent?

by **nigelsmith** on Mon Aug 22, 2011 4:36 pm

The company doesn't own the barn and I hadn't considered leasing this out to the company.

by **section 44** on Mon Aug 22, 2011 5:55 pm

You aren't entitled to any deduction because you don't do anything to deduct against.

by **Incredulum** on Wed Aug 24, 2011 5:55 pm

Who incurred the expenditure on the fit out? If the company then it company may have an entitlement to capital allowances. If you, then you can charge rent up to the value of the annual capital allowances claim and receive the rent tax free.

But how much would they be, on a bit of electrics, and maybe some plumbing. And upon cessation you would have to bring them back in at market value which might give you a clawback of tax at that point.