HMRC accept that farmhouses are an integral part of the farm business and that farmers need to be available at all times to attend to livestock and safeguard farm buildings and equipment. Since the farmer and his family also reside in the farmhouse, there is a need to apportion the VAT incurred between business and private use.

Sole proprietors and partnerships who are full-time farmers may normally claim 70 per cent of the VAT incurred on repairs and maintenance, but it may be a lesser amount for alterations (Walthall [1999] BVC 4,073).

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