We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Finance fees - allowable expense?
Ed-1
Posts: 3,960 Forumite
If a mortgage is used partly to finance a buy to let purchase property (75%) and partly to finance private home improvements (25%) then 3/4 of the interest on it is an allowable expense against rental profits.
However, can a proportion of the fees also be an allowable expense? Say if there was a £900 arrangement fee added to the loan - is this fee not wholly and exclusively for letting purposes and so not tax deductible at all or can 3/4 of it be tax deductible as with interest?
Same with legal fees: if this mortgage was a remortgage then legal fees can be an allowable expense but only if they were incurred wholly and exclusively for letting purposes - which they weren't here as the mortgage also covered private home improvements.
However, can a proportion of the fees also be an allowable expense? Say if there was a £900 arrangement fee added to the loan - is this fee not wholly and exclusively for letting purposes and so not tax deductible at all or can 3/4 of it be tax deductible as with interest?
Same with legal fees: if this mortgage was a remortgage then legal fees can be an allowable expense but only if they were incurred wholly and exclusively for letting purposes - which they weren't here as the mortgage also covered private home improvements.
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.4K Banking & Borrowing
- 253.3K Reduce Debt & Boost Income
- 453.8K Spending & Discounts
- 244.4K Work, Benefits & Business
- 599.6K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards