Landlord tax question

Jon123_2

Hey everyone,

I'm a new landlord with one property. I took out a buy-to-let mortgage and had to incur a fee of £2100 for the pleasure. The bank added the fee to my loan so I'm paying interest on it.

For tax purposes, various expenses related to the property can be deducted from my rental income before working out how much tax I have to pay. I have deducted my mortgage interest payment, but can I also deduct the mortgage fee even though technically I haven't actually paid it (yet). I'm thinking that might be fraud...

Cheers
Jon

Red_Cat

If the fee is part of the loan adn by including your mortgage interest payments, are you not already covering the interest of the fee itself?

I would say that an expense you have should be put against the tax year in which it is incurred, not necessarily paid.

I do not know if a mortgage fee is an allowable expense though.

Icey77

I believe a mortgage fee is a capital expense that can only be claimed against any gain when you come to dispose of the property for Capitaal Gains Tax purposes. If in doubt give HMRC a call and ask them, they've always been very helpful when I've called.