Non-business use of property

There are certain rules which apply where a property is used for, or diverted to, a private or non-business use.

Private use is generally the use of an asset for personal purposes. An example is where a person uses part of a business premises to live in. Non-business use is use of a business asset for any purpose other than that of the business.  The same treatment applies to both private and non-business use.

The Value-Added Tax (VAT) treatment of non-business use or diversion to non-business use of property, depends on when the property was acquired or developed. The VAT treatment of property acquired or developed prior to 1 January 2011, differs from property acquired or developed on or after 1 January 2011.

For information on the diversion of a property from taxable use to exempt use, please see the Capital Goods Scheme (CGS).

Further guidance contains more detailed information on the VAT implications of the non-business use, or diversion to non-business use of property.