shorten- first limb Mr. Banks, a self-employed polytechnic tutor, works from home because the polytechnic doesn't provide workspaces. He uses his dining room solely for his tutoring work and claims deductions for related household expenses like electricity and furniture depreciation. The Inland Revenue disagrees with these claims, so the case has gone to the Court of Appeal to decide if these expenses can be deducted. The main question is whether the expenses were necessary for his tutoring work, not whether he would have had them anyway. Short answer is yes, its allowed as a deduction. What came out of the court? They say a deduction only available where expenditure has necessary relationship both with taxpayer and the producing of income ( nexus)? Is there a connection between expenditure him using dining room for purpose of generating this income. Yes that is there. Second thing to think about is that it is part of his house. Can he have expense on part of his house as a deduction. Yes, as the language we have looked at specifically contemplates apportionment. At the time of this case, the language was to the extent that but now it is to the text to which. Ultimately Interpretation is the same. Legislation contemplate that we might have situation like that were part of the expenditure is deductible but actually part of it is not. Everything in the rest of the house is