Tax & Allowable Expenses Question

Malibusmash

I've just bought an investment property and am aware I cannot claim my Solicitor's legal fees nor Stamp Duty as an allowance expense.

However, I have at the same time, remortgaged two other existing BTL properties, both of which have incurred Solicitor's legal fees and mortgage valuation fees etc. Are these classed as allowance expenses?

makeitstop

Malibusmash wrote: »

I've just bought an investment property and am aware I cannot claim my Solicitor's legal fees nor Stamp Duty as an allowance expense.

However, I have at the same time, remortgaged two other existing BTL properties, both of which have incurred Solicitor's legal fees and mortgage valuation fees etc. Are these classed as allowance expenses?

As an ongoing part of your ownership costs, I would guess at yes.

I would certainly try it anyway.

jjlandlord

Malibusmash wrote: »

However, I have at the same time, remortgaged two other existing BTL properties, both of which have incurred Solicitor's legal fees and mortgage valuation fees etc. Are these classed as allowance expenses?

Yes, financing costs are allowable expenses, though in principle they should be amortised over the life of the loan.

Malibusmash

Thanks both. JJ, when you say financing costs are allowable, do you mean allowable only on refinancing and not on new purchases?

jjlandlord

Malibusmash wrote: »

Thanks both. JJ, when you say financing costs are allowable, do you mean allowable only on refinancing and not on new purchases?

They are allowable in all cases.

When you purchases a new property and your solicitor acts for the lender you should ask him for a detailed invoice so that you can claim the part related to that (if any).
Valuation survey by the lender, etc. are also financing costs and thus allowable.

Malibusmash

Many thanks