CG64690 - Private residence relief: non residential use: part of house used for owner’s office/employment
S224(1) TCGA92 does not exclude from relief any gain accruing from part of a residence used for the purpose of the owner’s office or employment. No adjustment should be made where, for example, a room is used as a study, even though a deduction has been made for employment income purposes in respect of expenditure for the use of the room.
If a substantial part of the residence is used exclusively as an office or for other purposes of the office or employment, private residence relief should be restricted. Relief is only available for that part of the dwelling-house which has been used as its owner’s residence.