Allowable expenses legal fees

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    Allowable expenses legal fees

    Hi - perhaps this has been asked before but I cant find it on a search - I am currently completing my self assessment. I have two buy to let purchases. Both propertys were purchased for this purpose. I have never lived in them. Are my solicitors fees and estate agents fee classed as an allowable expense to deduct from my annual profit. One other issue is I bought one of these in previous tax year 2018/2019. Getting advice from HMRC has been difficult - long wait times and written letter requested. Grateful for your help. Thank you

    #2
    Originally posted by orangeanorak View Post
    estate agents fee
    As a buyer, what service did you pay an estate agent for?

    There is a fine line between irony and stupidity. If I say something absurd please assume that I am being facetious.

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      #3
      Sorry for confusion. I an now using the sellers estate agent as the management company for one of my properties. I should have said Management Company not estate agent.

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        #4
        The solicitor's fees relating to the purchase are capital expenses and are allowable against the gain when disposed of.
        The Management companies fees are allowed against income (not profit).

        I'd suggest not asking HMRC for advice about how much tax you should pay them.
        They have performance targets relating to how much tax they collect and can't be relied on to advise in your best interests.
        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).

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          #5
          The self assessment tax return ( Form SA100 + SA105 ?) is for declaring your 12 months rental income for tax year 6 April 2020- 5 April 2021) plus relevant operating expenses ( including estate agent fee for finding the rental tenant , insurance + maintenance)

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            #6
            Thank you for this - I am now clear.

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              #7
              To be clear - no you cannot claim the solicitors or agent expenses relating to the actual purchase (for example if you paid to get some sort of info pack, or to register your assignment). These are capital expenses.

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