Annual 'consent to let' fee on Self Assessment (is it an allowable expense?)

haveabreak

Hi there

My mortgage provider has started charging an annual "consent to let" fee of £120 for my property which i currently let out.

On the self assessment do I include this fee in  Residential finance costs not included in 'Loan interest and other financial costs' , i.e. with the mortgage interest paid. Or can I include it as an allowable property expense somewhere else in the form?

Thanks in advacne

simon_or

My old lender Nationwide added a 1% surcharge for CTL and I just put the whole interest cost in the finance costs section. 

I'm assuming you should be ok doing the same with the £120 annual CTL fee as it's part of the mortgage costs for the rental property.

Jeremy535897

Yes, it is covered by section 272B(5)(c) ITTOIA 2005, which treats "incidental costs of obtaining finance by means of the loan" as within the rules.

haveabreak

Thanks. HMRC confirmed as it is not a fee relating to the setting up of the loan it would go in the allowable other expenses box.

Jeremy535897

haveabreak said:

Thanks. HMRC confirmed as it is not a fee relating to the setting up of the loan it would go in the allowable other expenses box.

I doubt they are right, so record their decision if you can.

haveabreak

Jeremy535897 said:

haveabreak said:

Thanks. HMRC confirmed as it is not a fee relating to the setting up of the loan it would go in the allowable other expenses box.

I doubt they are right, so record their decision if you can.

Yes they told me on twitter

Jeremy535897

Keep a copy then. They might be right. It turns on whether "obtaining" means "obtaining in the first instance" or "continuing to obtain", given that the lender would presumably recall the loan if you didn't comply. It seems rather odd that the lender could circumvent the intent of the legislation by increasing this sort of ongoing charge and reducing the interest payable.