Early Repayment Penalty against CGT?

Early Repayment Penalty against CGT?

14:20 PM, 20th January 2023, About 2 months ago

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Hello helpful peeps. I am wondering if a Lender’s Early Repayment Penalty can be used as a Capital Cost and offset against CGT?

Many Thanks.


Hi Helen, My colleague Alex Norian who is an accountant and a Property118 tax consultant has very helpfully provided a Loom video to answer your question

In summary, generally, a finance cost is set against income tax and not considered a capital cost apart from in the exceptional circumstances Alex explains in his video:

Are Early Redemption Charges Capital Costs? – Watch Video

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