Tax implications of renting a home as a location for filming.

If we regularly rent out our permanent residence without vacating it and charge VAT on the daily location rental fee, can we reclaim vat on any refurbishment or improvement that we need to do? The house will suffer considerable wear and tear from the film crews so it will need regular re-decorating (more than a usual residence) and some replacement of furniture. I assume the net cost is not an allowable expense, but if HMRC is collecting VAT on the fee then can we reclaim any VAT spent on renovation? Will there be any change to the CGT allowance on the main residence if it's occasionally used as a location. Please note that the whole house will be used both as a dwelling and also as a filming location.

Hi Ed Reeve,
If you are a VAT registered business then you can normally recover VAT which are incurred in the course of you business.
Please see the guidance below:
10. Introduction to input tax
However there will be an element of business and non business use relating to the VAT incurred and so a fair and reasonable apportionement would need to be made in relation to any input tax recovered.
Please see the guidance below:
VIT25000 - Is it input tax: mixed business and private or non-business use
32. Apportionment of tax between business and non-business activities
For CGT, HMRC cannot comment on future events as legislation may change.
Thank you.