EIM11501 - Living accommodation: part of
premises used for business purposes: overview
Part 3 Chapter 5 ITEPA 2003
Where part of the premises are used for business purposes there
are two possible ways in which the benefit of living accommodation
can be restricted.
- Where the construction of the premises is
such that a separate part is clearly designed and used for business
use rather than living accommodation (see
EIM11502, example
EIM11504 and example
EIM11505). An example would be premises
consisting of a shop with a flat over it. In such a case the living
accommodation does not include the part clearly designed and used
for business use. The living accommodation is only the flat above
the shop and does not include any of the shop below.
- Where the construction of the premises is
primarily designed as living accommodation even though some rooms
are being used exclusively for business purposes (see
EIM11503 and example
EIM11506). An example would be an
ordinary house in which one room was used exclusively as an office.
The living accommodation would consist of the whole house but there
may be a deduction, equivalent to a Section 336 ITEPA 2003
deduction, from the provided living accommodation benefit.
