BIM58505 - Historic houses: expenses
allowable
Where the Case I basis is applied, the occupier will be entitled
to claim as a deduction so much of any expenditure which is
incurred on the upkeep of the house, its contents and the gardens
as is referable to the trading activity. If the occupier continues
to use the house as a residence, there will normally be three kinds
of expenditure, namely-
- expenses wholly chargeable against the trade,
- expenses wholly referable to domestic or private purposes,
- common expenses which fall to be apportioned, on the basis of
the facts of each case, between the specific trading activities and
the general use of the house etc as a residence. These expenses
would, for the most part, continue irrespective of the public
showing, and during periods in which the house is not actually
occupied although it is available as a residence. The normal
approach in the case of such expenses should be to seek to agree
the part which is proper to the trading activities rather than
merely to disallow a proportion to cover the private use.
