New buy to let property- what can i claim?

marcusone

Just bought our first buy to let property and was wondering if we can claim for all the expenses of buying the property. Things such as solicitors fees, mortgage arrangement fees etc.

Many thanks for any advice.

Mark

MJSW

Generally you won't be able to claim expenses incurred in buying the property. These are treated as capital costs, and so you will not get relief against your Income Tax for them. Instead, fees such as solicitors fees, estate agents fees and Stamp Duty will increase the cost of acquiring the property when it comes to working out your Capital Gains when you eventually sell the property.

One bit of good news though, the cost of obtaining the mortgage to buy the property should be allowable.

Take a look at http://www.inlandrevenue.gov.uk/pdfs/2003_04/land/sa105_notes.pdf ,which is the Inland Revenue's guide to completing the property parts of the tax return. If you need more detailed information, take a look at their IR150 booklet, which runs to a mammoth 145 pages!