What do i include on Tax return?

Printer

Hi All,

Filling my tax return for my BTL. First time and i seem to have everything i need in order but have a couple of questions that i'm sure i knew the answer to when i did my original research but it all escapes me now its tax time!

1. Can i include the charges by the solicitor for actually being the place? IE. there charges, land registry, money laundering ID check etc?

2. Can i include the charges by the mortgage company? IE evaluation charge, application fee etc?

Thanks all.

P.

fengirl_2

1. If you mean buying the place, no, these expenses are only allowable for CGT when you sell.
2. Yes.

Pennywise

Further to Fengirl's answer which I agree with, you may be interested in HMRC's rules on other legal & professional fees:-

http://www.hmrc.gov.uk/manuals/pimmanual/PIM2205.htm

In particular, look at the legal fees in the second paragraph which may apply and is something that is often overlooked.

Printer

Thanks all.

Can i include the product fee which was added to the mortgage amount?


I must be honest, i'm a bit unclear as to what the paragraph is refering to. Is the agent refered to the letting agent or the agent selling the mortgage?

My lease on my BTL runs six months and is renewed every six months so i assume i can include the fees from my surveyor and agent (if the agent is the letting agent).

ALso, i was not given a breakdown of the cost by my letting agent. The deal was they take the first months rent and then a percentage afterthat. I assume (rightly or wrongly) i can include off of those costs?

Thanks all for your help, much appreciated.

P.