SA103 box 20 — rent, rates, power and insurance costs

Premises & Utilities

Rent, rates, and utilities for your business premises. If you work from home, use the home office rules instead.

What you CAN claim

  • Commercial property rent
  • Business rates
  • Electricity, gas, water for business premises
  • Building and contents insurance for business premises
  • Cleaning and maintenance of business premises
  • Security costs

What you CANNOT claim

  • Mortgage capital repayments on business property
  • Home costs (use home office rules)
  • Improvements that increase the value of property (capital expenditure)

Common examples for sole traders

Monthly workshop rentBusiness rates on a studioElectricity bill for a commercial unitContents insurance for a workshopCleaning company for office premisesCo-working space membership

Practical tips

  1. 1

    If you rent space in a co-working space or serviced office, the full cost is deductible

  2. 2

    Repairs and maintenance are revenue costs; structural improvements are capital

  3. 3

    Keep utility bills as evidence — HMRC may ask for them

View HMRC guidance on GOV.UK

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