Section 94H | Use of home for business purposes ^F1

(1)This section applies if, in calculating the profits of a trade of a person for a period, a deduction (“the standard deduction”) would otherwise be allowable for the period in respect of—^F1F2

(a)the use of the person's home for the purposes of the trade, or^F1F2

(b)where the person is a firm, the use of a partner's home for those purposes.^F1F2

(2)The person may, instead of making the standard deduction, make a deduction for the period under this section.^F1

(3)The amount of the deduction allowable for the period is the sum of the applicable amounts for each month, or part of a month, falling within the period.^F1

(4)The applicable amount for a month, or part of a month, is given by the following Table—^F1F3

where the “number of hours worked” in a month (or part of a month) is the number of hours spent wholly and exclusively on qualifying work.

(4A)Qualifying work” means—^F1F4

(a)work done by the person, or any employee of the person, in the person's home wholly and exclusively for the purposes of the trade, or^F1F4

(b)where the person is a firm, work done by a partner, or any employee of the firm, in the partner's home wholly and exclusively for those purposes.^F1F4

(4B)Where more than one person does qualifying work in the same home at the same time, any hour spent wholly and exclusively on that work is to be taken into account only once for the purposes of subsection (4).^F1F4

(5)If the person, or, where the person is a firm, a partner of the firm, has more than one home, this section has effect as if those homes were a single home.^F1F5

(5A)Where a firm makes a deduction for a period under this section in respect of the use of a partner's home for the purposes of a trade, the only deduction which the firm may make for the period in respect of the use of any other partner's home for those purposes is a deduction under this section.^F1F6

(6)The Treasury may by regulations amend subsection (4) so as to alter the rates or rate bands.^F1