Claiming losses against personal tax
Question from Chris updated on 1st May 2007:
Is their any way you can claim losses against your personal income tax on your family home if you live in it?
Our expert responded:
The short answer is no. Some people have tried this, and Inland Revenue have ruled this as tax avoidance, which is a very significant offence and carries harsh penalties. The only expenses you can claim on your home are those expenses which relate to your home office, such as phone, electricity and interest on your home mortgage. And those expenses are taken based on your home office as a percentage of your total floor space.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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