BTL mortgage fee/costs. Offsettable against tax?
Discussion
This is quoted from the HMRC toolkit and summarised how I traet these matters:
"Generally, fees are capital if they relate to a capital matter, such as the purchase of property.
Therefore costs incurred in respect of acquiring, adding to or selling an asset are normally
capital, for example fees paid to a surveyor/valuer, planning permission or registration of title on
a property purchase.
The incidental costs of obtaining finance that are wholly and exclusively incurred for the purpose
of acquiring the property are normally allowable."
So refinancing costs of a loan that was used for acquiring the rental property should be allowable.
PM me if you have any more questions.
David
"Generally, fees are capital if they relate to a capital matter, such as the purchase of property.
Therefore costs incurred in respect of acquiring, adding to or selling an asset are normally
capital, for example fees paid to a surveyor/valuer, planning permission or registration of title on
a property purchase.
The incidental costs of obtaining finance that are wholly and exclusively incurred for the purpose
of acquiring the property are normally allowable."
So refinancing costs of a loan that was used for acquiring the rental property should be allowable.
PM me if you have any more questions.
David
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