Can you add a Leasehold Extension as a costs on your tax return ?? 31 January at 11:17PM in Cutting tax 8 replies 169 views

nyck

We've stupidly let our Leasehold go below 80 years so looking to extended it soon or possibly  wait to see what happens with Leasehold reforms + marriage value.

So my question is can we add full or part of the cost onto our tax return

thanks 

DullGreyGuy

nyck said:

So my question is can we add full or part of the cost onto our tax return

Is it owned by your company? Did you pay the higher stamp duty as a consequence?

nyck

DullGreyGuy said:

nyck said:

So my question is can we add full or part of the cost onto our tax return

Is it owned by your company? Did you pay the higher stamp duty as a consequence?

No it in Personal name

Grumpy_chap

Is this a BTL, or is this your Principal Private Residence?

nyck

Grumpy_chap said:

Is this a BTL, or is this your Principal Private Residence?

Its a BTL , with a friend if that makes any difference??

thanks

Jeremy535897

JamesRobinson48 said:

I'm no expert, but I believe in outline the cost you incurred in acquiring the lease extension would be added to the cost of your investment in the property for CGT purposes, and could not be a deductible expense for income tax purposes.  

That is correct with long leases like this one.

purdyoaten2

JamesRobinson48 said:

I'm no expert, but I believe in outline the cost you incurred in acquiring the lease extension would be added to the cost of your investment in the property for CGT purposes, and could not be a deductible expense for income tax purposes.  

Not that clear cut. Appears to depend on length of the lease. 

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120

Jeremy535897

purdyoaten2 said:

JamesRobinson48 said:

I'm no expert, but I believe in outline the cost you incurred in acquiring the lease extension would be added to the cost of your investment in the property for CGT purposes, and could not be a deductible expense for income tax purposes.  

Not that clear cut. Appears to depend on length of the lease. 

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120

Yes, this is a long lease per OP (only slightly under 80 years currently), so capital.

purdyoaten2

Jeremy535897 said:

purdyoaten2 said:

JamesRobinson48 said:

I'm no expert, but I believe in outline the cost you incurred in acquiring the lease extension would be added to the cost of your investment in the property for CGT purposes, and could not be a deductible expense for income tax purposes.  

Not that clear cut. Appears to depend on length of the lease. 

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120

Yes, this is a long lease per OP (only slightly under 80 years currently), so capital.

Yes - and to clarify for the op, cannot be claimed against rental income (add the cost on to their tax return).