Cashback on BTL remortgage

[RichS]

Evening all,

Last month I remortgaged our buy to let onto Virgin's 1.8% BTL rate. I paid solicitors' fees, a security release fee for the outgoing lender and a mortgage arrangement fee in the normal way.

I believe these fees can be set off against my annual income from the property as an expense- is this correct? Or are they only to be taken into account against capital gains on sale? If the former, should they be pro-rated for each remaining year of the mortgage term?

I also received £500 cashback from Virgin as part of the deal. Is this taxable income which needs to be declared?

Thanks,

Richard

[AnimalMother]

I think the fee's are a capital cost, so part of your cgt calculation.

The £500 could either be income like rent or perhaps part of the loan maybe?