BIM55250 - Farming: receipts and expenses: expenses of farmhouse

A farmhouse normally fulfils a dual role being primarily the private residence of the farmer and his or her family and secondarily the centre of business operations on the farm. The farmer's occupation of the farmhouse partly as a residence means that the provisions of ITTOIA/S34 apply. Only the proportion of the expenses such as heating and lighting, repairs, maintenance and insurance and, in the case of a tenant farmer, rent (see BIM55255), which is attributable to the business use of a farmhouse should be allowed as a deduction in computing farming profits.

You may see cases where, one third of the farmhouse expenses is claimed as if this were a standard allowable proportion. There is no statutory authority for this fraction and the extent of any business use will always be a question of fact and degree in any particular case.