What Estate Agents Fees Can I Claim?

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    What Estate Agents Fees Can I Claim?

    I just let a property for 18 months and use an estate agent to manage it. I understand that the management fee is allowed in full against tax but NOT the letting fee...as the tenancy is for over 12 months .Ugh! Can this be true? Also both fees were taken from the first couple of months rent...is that when they must be taken against tax or can I apportion it the fee(if allowable) and management fee over the life of the tenancy?
    Thanks in advance for any good advice!

    In my experience, lettings fee is allowable except when the lease is a very long lease, which certainly is not the case with a 12 month lease.

    Strictly speaking, it should be apportioned to the periods to which it relates. I would say that the letting fee has actually been incurred regardless of whether the tenancy lasts for 2 months or 12 months. If so, you should claim it in the year in which it is incurred.

    Management fees relates to each month and therefore this should be claimed in the months to which it relates, ie spread out over the lease.

    In practice, Inland Revenue is quite happy to accept whichever treatment you wish to adopt so long as you apply this treatment consistently in relation to all the lettings.

    Private advice is available for a fee by sending a private message.


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