Stamp duty on Buy to let

berbatov10

I have the opportunity to buy the ground floor flat where I already own upstairs. This would make me liable for stamp duty (total £280000) my question being is that stamp duty tax deductible as it seems a grey area as far as HMRC are concerned

da_rule

Short answer would seem to be no.

http://www.accountingweb.co.uk/anyanswers/stamp-duty-paid-allowable-expense-against-trading-profits

kingstreet

AIUI stamp duty, along with the other purchase costs, is allowable against the future CGT liability on sale.

Capital gains tax is payable when you sell a buy-to-let property at a profit from when you bought it. It isn't payable if you make a loss.

You get an annual tax-free allowance of capital gains that you can make each tax year, before capital gains tax is charged. This allowance for tax year 2014/15 is £11,000.

If you have sold a buy-to-let property, you'll need to declare this on your Self Assessment tax return. Capital Gains Tax is charged at 18% or 28% of the profit (depending on the taxable income and total capital gains you've made over the year).

If you have made a loss in buy-to-let property sold in a previous year, you may be able to use this loss to reduce your capital gains bill. Similarly, you are able to deduct some expenses you've incurred in buying, selling or improving the property:

Solicitor's fees
Estate agent's fees
Costs involved in advertising the property for sale
Costs incurred in increasing the property's value (improvements, but not maintenance or general upkeep costs)
Stamp duty

http://moneyfacts.co.uk/guides/buy-to-let/tax-on-buy-to-let-property-and-income290312/