Tax rebate for eviction legal fees?

Tax rebate for eviction legal fees?

10:19 AM, 4th January 2021, About 10 months ago 5

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I have unfortunately incurred significant legal costs in the process of evicting a tenant.

My question is if I can claim a tax rebate for this expense?

Also, would this be considered an income or capital cost?

Many thanks

Rajesh



Comments

by Olls63

11:13 AM, 4th January 2021, About 10 months ago

Eviction costs are specifically included as allowable expenses to be set against rental income in HMRC Property Income Manual 2120.

by Paul Baker

11:31 AM, 4th January 2021, About 10 months ago

I would include them under Legal & Professional Fees, and have done so last year when I went through an eviction.

by NewYorkie

19:45 PM, 4th January 2021, About 10 months ago

Reply to the comment left by Olls63 at 04/01/2021 - 11:13
I agree, but not much use if the reason for the eviction is because you haven't had any rental income!

by Michael Barnes

18:43 PM, 11th January 2021, About 9 months ago

Reply to the comment left by NewYorkie at 04/01/2021 - 19:45
"not much use if the reason for the eviction is because you haven't had any rental income!"

Any loss can be carried forward.

by Adrian Jones

15:47 PM, 18th January 2021, About 9 months ago

Reply to the comment left by Michael Barnes at 11/01/2021 - 18:43
Surprising how many people don't realise this, useful as well when the property is vacant and you are still incurring costs, mortgage, insurance Council Tax etc.


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