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Capital Gains Tax advise working from home making little profit

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Hi, after a bit of advice whilst searching the internet for a tax advisor.

We are 2 adults, 2 children. I work from home (approx 10 hours a week), sole trader, self-employed, non-taxpayer. I converted my garage with 'change of use to beauty treatments and residential use' back in 2011. I believe I wouldn't be liable for CGT for this period as the room was not exclusively used for business.

If this room changes to exclusive business use, I may be liable for CGT for this room when I sell the house in the future?

My self-employed income is only £3,500 a year, would I pay CGT if my earnings are that low and I work little hours? I pay £600 a year into a private pension. We have no savings or shares.

If I am liable for CGT...I'm trying to work out approx what that would be when we eventually sell- say in 5 years. We've made aprox 125k  on the market value in the 15 years we've been in the house so far. We have 3 beds, 2 bathrooms, 1 toilet room, 1 small utility room (9ft x 4ft), 1 living room, 1 part open plan large kitchen/dining room (I would class this as 2 rooms), and the salon/garage conversion. So would this be 11 rooms to calculate the CGT? Or are bathrooms and kitchens not counted for CGT, then making it 7 rooms, or 6 because of the small utility?

I'm not sure if it makes a difference but we have had a council tax band reduction for our disabled child because we sometimes need a separate bathroom (the extra bathroom is in the garage conversion/salon behind a partition wall and is sometimes used by the family/child when I’m not working), assuming Capital Gains Tax wouldn't be counted for the room just because it’s within the garage conversion next to the room i use for business.

At some point, we may even decide to put the salon back to a normal room ie second reception room.


Thank you

 


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