Allowable legal costs for tax purposes?
1:04 PM, 26th March 2021, 5 years ago
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Hi everyone, I have just been through a very difficult and complicated divorce. I have been a landlord for many years and acquired 8 rental properties, two were in joint names, and as part of the settlement my ex-husband agreed to transfer these to my name.
I remortgaged 4 properties to buy him out.
My question is can I include the solicitors costs for transfers and remortgaged on my tax return. I know I can’t for my divorce solicitor but thought maybe I could for my conveyancing solicitor.
Thank you in advance
Christine
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Member Since November 2013 - Comments: 68
2:26 PM, 26th March 2021, About 5 years ago
Transfer costs could be off set as capital costs; ie against CGT on any future sale
Remortgage fees & related solicitors fees would be considered as finance costs so now due to Sec 24 relief will be restricted to basic rate of 20%
Interest on the new mortgages will benefit from 20% relief as long as their aggregate value does not exceed the value of the properties on the first day they were let.
Member Since February 2021 - Comments: 1
10:50 PM, 26th March 2021, About 5 years ago
Reply to the comment left by Alistair Cooper at 26/03/2021 – 14:26
Thank you, that’s very helpful