Is mortgage broker fee tax deductible?

jumperabv3

Is it tax deductible for UK tax purposes?

jonesMUFCforever

Has the property you are purchasing anything to do with your business or is it a home for personal use?

jumperabv3

jonesMUFCforever said:

Has the property you are purchasing anything to do with your business or is it a home for personal use?

It's a BTL property.

glennevis

Allowable expense but only against CGT when you sell. Keep the invoice safe.

jumperabv3

glennevis said:

Allowable expense but only against CGT when you sell. Keep the invoice safe.

Thanks!

Jeremy535897

jumperabv3 said:

glennevis said:

Allowable expense but only against CGT when you sell. Keep the invoice safe.

Thanks!

Where does this come from? Mortgage arrangement fees are deductible from rental income, although relief is now limited to 20% like it is for mortgage interest. This article precedes the limitation of relief against higher rate tax, but otherwise remains valid, I think:
http://www.fyldetaxaccountants.co.uk/property-articles/are-lender-arrangement-fees-tax-deductible-for-landlords

[Deleted User]

Jeremy535897 said:

jumperabv3 said:

glennevis said:

Allowable expense but only against CGT when you sell. Keep the invoice safe.

Thanks!

Where does this come from? Mortgage arrangement fees are deductible from rental income, although relief is now limited to 20% like it is for mortgage interest. This article precedes the limitation of relief against higher rate tax, but otherwise remains valid, I think:
http://www.fyldetaxaccountants.co.uk/property-articles/are-lender-arrangement-fees-tax-deductible-for-landlords

Absolutely. The costs of obtaining finance is not regarded as an associated cost of buying the property such as legal fees etc

jumperabv3

purdyoaten2 said:

Absolutely. The costs of obtaining finance is not regarded as an associated cost of buying the property such as legal fees etc

No, I'm not referring to selling the property but to rental income.
Now I noticed I received my mortgage in March 2020 so it was before April 2020 - so if I already filed taxes for 2020 then I can't include this expense when I file taxes for 2021? (I haven't exchanged/completed yet but should be done very shortly and only then I'd start getting rental income).
So any ideas if I can use it or not?

Jeremy535897

If the expense should have been claimed in 2019/20 you can file an amended return for 2019/20.

WendyMorrisone

thanks for sharing

unholyangel

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim45825

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2105