Q&A: company expenditure on director’s home

In this week’s Q&A, Ewan Edwards, VIP tax advisor at Croner-i, examines whether capital allowances can be claimed when a business premises transfers to the owner’s home and needs refurbishment

My client, a married couple, owns a company that trades as a hairdresser and beautician. The company pays a sizeable rent to a third party for premises. They have personally bought a substantial old property as a home with a large basement. They intend converting the basement to a salon and operating the business from there, the company will be charged a commercial rent by the directors.

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