Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I have recently bought a second buy to let property and a little unsure of what costs that can actually be deducted from my income.
I let out my first property since 2014 and the purchase of the second property completed in May 2016 and it was then been let out in June. I am currently completing tax returns for April 2016 and would like to have some advise of which of these purchasing costs (if any) can be deducted against my rental income?
– legal cost of purchasing the second property
– survey fee
– mortgage arrangement fee
– mortgage application fee
– other costs associated when purchasing this property e.g. searches, ID verification etc
My questions are:
– which of the above costs can be deducted against rental income?
– although the completion of the second property was done in May 2016 but some of the costs was spent between Jan 2016 to April 2016 (i.e. within the April 2016 tax year)- should the costs be claimed in 2016 or 2017 (as the property was let from June 2016 so it falls in the next tax year)? If the costs to be claimed in 2016 it will mean that it will be deducted against the rental income from my first property- will this be ok?
– I have also tried to purchase another property back in Dec 2015 but the buyer dropped out last minute and I have already spent some legal costs and survey fees- can I deduct this cost/loss from my rental income in 2016?
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