Can Estate Agent sales fees been included on tax return

jimmy_boy81

Apologies if in the wrong thread.


I sold my flat which I was renting in 2016 and so currently preparing my tax returns. Are the fees incurred by the estate agents for the sale an allowable expense?


Thanks in advance

silvercar

Allowable expense against a CGT calculation rather than income tax.

jimmy_boy81

Yeah sorry this is my tax return for the rental income - I work full time

saajan_12

jimmy_boy81 wrote: »

Yeah sorry this is my tax return for the rental income - I work full time

That doesn't change the fact that tax on capital gains (CGT) is separate from tax on income (rental + salary).


CGT:
- Tax on the increase in value of properties / other investments (less a relief for your main residence)
- Expenses: selling/buying costs inc EA fees, solicitor, mortgage fee. Also capital improvements e.g. an extension on the house

Income tax:
- Tax on income including from salary and monthly rent
- Expenses: Letting agent fees, repairs, redecorating costs, maintenance, gas safety cert, deposit protection fee

silvercar

jimmy_boy81 wrote: »

Yeah sorry this is my tax return for the rental income - I work full time

Estate agents fees on sale would be allowable against CGT. So make a note of them and keep the invoice. Use it when you calculate if any CGT is due on the sale of the property.

You can't put them against rental income.