Using part of bedroom for business and Capital Gains Tax on future sale

Dear HMRC, I operate my business from my bedroom i.e the room is NOT exclusively used for business purposes. This is my sole home. I do not own a second home. Can you just confirm that I would have no Capital Gains Tax liabilities on a future sale of the property? Thanks

Hi ,
 

HMRC cannot comment on future events as legislation and/or plans may change. For current guidance, refer to : HS283 Private Residence Relief (2024) . Thank you .

Not HMRC...generally, no you wouldnt have a CGT liability. When COVID hit and the vast majority of office based employees were required to work from home (including HMRC staff) HMRC accepted and advised that employees could all claim a flat rate of £312 a year (£6 a week) regardless of days worked at home, to cover additional heating/lighting, unless their employer re-imbursed them directly, this does not make those employees liable to CGT on future sale of their properties. That flat rate has now gone for employees, unless the employee has a contract after COVID that requires working from home. Similarly, if working from home for self employment it can be argued that £312 as a flat rate expense in your business for "use of home as office" is reasonable. https://www.gov.uk/simpler-income-tax-simplified-expenses/working-from-home The alternative is to actually add up utility bills and work out business use which is overtly complicated and unecessary as it is rare, taking in to account the fact that only part of one room is used out of 4/5/6 rooms in a house, that people only work 1/3rd of their day generally etc etc, so I wouldnt claim more than than, and doing so would not open you up to CGT in the event of sale. If, however, a separate office were to be built then this may add value and the CGT position may " open up"