Sam TheMan

Registered with Property118.com
Thursday 4th August 2016


Latest Comments

Total Number of Property118 Comments: 2

Sam TheMan

17:02 PM, 4th August 2016
About 4 years ago

Mortgage fees for a BTL mortgage arranged during the previous tax year

Appreciate your advice. It is reassuring to hear that these pre-business start costs can potentially be claimed for the 2014-2015 tax year.
Won't HMRC ask me to mention these pre-business start costs such as the mortgage fees in a separate Self-Assessment for 2013-2014?... Read More

Sam TheMan

11:25 AM, 4th August 2016
About 4 years ago

Mortgage fees for a BTL mortgage arranged during the previous tax year

Thanks for the reply and thanks for pointing out those common mistakes. Those wouldn't be wasted on a newbie like me. However, I'm not looking to claim any legal fees. Obviously I understand that that would not be tax deductible.

I read the HMRC Property Rental Toolkit and as I think you agree, the arrangement fees should be tax deductible. How do people handle tax relief or changes in their declarations for the previous year?
Obviously, I'm going to get in contact with a tax accountant now..

https://www.gov.uk/government/publications/hmrc-property-rental-toolkit

8. Have any legal and other professional fees incurred in acquiring an asset been
allocated appropriately?

Generally, fees are capital if they relate to a capital matter, such as the purchase of property.
Therefore costs incurred in respect of acquiring, adding to or selling an asset are normally capital, for example fees paid to a surveyor/valuer, planning permission or registration of title on a property purchase.
The incidental costs of obtaining finance that are wholly and exclusively incurred for the purpose of acquiring the property are normally allowable.... Read More