Are lawyer’s fees against builder’s shoddy work chargeable against rental income?

by Readers Question

9:40 AM, 19th February 2021
About 2 weeks ago

Are lawyer’s fees against builder’s shoddy work chargeable against rental income?

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Are lawyer’s fees against builder’s shoddy work chargeable against rental income?

Are lawyer’s fees chargeable against rental income? I had a firm, supposedly well accredited, called Lethbridge, to do the refurb on my flat in London. The work was rubbish, some not completed, so I didn’t pay for all the work.

They then took me to Court. We won, but I had big legal fees.

Can I charge these against the rental income? My accountant is not sure?

Would be great for some advice.
Rachel

Comments

DGM

12:17 PM, 19th February 2021
About 2 weeks ago

I would say it is allowable as capital expenditure as long as the works as mentioned are not just a spruce up of the property.
I would change accountants if they don't know basic stuff like this.
With regards to not being apportioned all costs at court. In the unfortunate times I have had to take people to court for property and non property related, even though I won the cases I have never had full costs agreed. The last time the judge allowed costs but at a lower hourly solicitor rate (that none work for at that rate). This is another arena which seems to be inconsistent with the law they are supposed to be upholding.

silversurfer2017

14:21 PM, 19th February 2021
About 2 weeks ago

Reply to the comment left by DGM at 19/02/2021 - 12:17
In my first posting I did think about mentioning changing accountants, it is basic stuff, even for an amateur accountant like me, but I did not want to be contentious.

DGM

14:41 PM, 19th February 2021
About 2 weeks ago

Reply to the comment left by at 19/02/2021 - 14:21
Not meaning to be contentious, but an accountant should know basic stuff like this, if he doesn't (I appreciate accounting is a difficult job with the amount of regulation they have to keep up to date on) then they should go and find out to help you and educate themselves, that is why you pay them.

silversurfer2017

14:49 PM, 19th February 2021
About 2 weeks ago

Reply to the comment left by DGM at 19/02/2021 - 14:41
That's why for the last 20 years or so I have been retired and have had the time, I have always done my own accounts. It is not rocket science; its like a big jigsaw puzzle but sometimes the pieces don't quite fit, but a lot of online help is available, forums as well. On the rare occasions I have phoned HMRC I have found them helpful.

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