Tax Treatment of Mortgage Arrangement Fees

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    Tax Treatment of Mortgage Arrangement Fees

    With the changes in tax relief for BTL investors, can I just seek advice in terms of mortgage arrangement fees please:

    1. For the purposes of the phasing out of tax relief on mortgage costs/interests, will the tax deductibility of mortgage arrangement fees be treated in the same way as mortgage interest i.e. a tapered reduction in relief over the next 4 years?

    or

    2. Are mortgage arrangement fees 100% non-tax deductible with effect from tax year 2017-2018?

    or

    3. Some other arrangement (please explain).

    Many thanks.
    G.

    #2
    Mortgage fees are treated exactly the same as interest, the relief is being tapered to the new restricted level.

    Strictly speaking, the fees should be amortised over the length of the mortgage, but most people don't do that.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Many thanks.
      I will go with a lower rate, with a arrangement fee therefore.
      G.

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