Abortive selling fees – BTL

by Readers Question

11:14 AM, 29th January 2018
About 11 months ago

Abortive selling fees – BTL

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Abortive selling fees – BTL

I have 4 BTL properties in the SE of England, I decided to sell one of them and very quickly received an offer and accepted. However, after 3 months the sale fell through (buyer change of mind), I have now decided to keep the flat and rent again.

My question is whether I can claim for the costs incurred in the selling process, although not excessive (around £500) should I keep the details to hand to offset capital gains when I decide to sell again or can I use it to offset my annual tax, or is it lost?

Many thanks

John



Comments

Neil Patterson

11:32 AM, 29th January 2018
About 11 months ago

Good question John,

The legal fees as part of a sale transaction would normally be treated as a capital expenditure.

However, after asking our accountants you cannot claim for an aborted transaction or change the nature of the expense later.

You can only claim for the capital expense against the transaction if the transaction actually happens.

Harsh !


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