Solicitors fees for BTL claimable or a capital gains?

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    Solicitors fees for BTL claimable or a capital gains?

    I bought a property on a buy to let mortgage in Feb 2013. Is my solicitors fees for the purchase an allowable expense for my self assessment for year april 2012- april 2013 or is it an expense that is only taken into account when selling the property? i.e it can be used to reduce my capital gains when I decide to sell the property in the future?

    Thanks in advance.

    #2
    Only when doing the CGT calculation on disposal.

    Comment


      #3
      Is that right? I have put solicitors fees, arrangement fees, valuation fees etc down as an expense incurred in the year. Are all costs relating to arranging a mortgage only taken into account when selling?

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        #4
        No - expenses relating to the mortgage should be allowable against rental income as "incidental costs of obtaining finance".

        The OP seems to be referring to the purchase costs?

        Comment


          #5
          Bear in mind that if the solicitor is acting for the lender as well as you (which they usually are), around 20% of their fee will be in relation to the legal aspects of the mortgage so you should be able to apportion that as revenue costs.

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            #6
            Possibly.

            Better option is to always get the solicitor to issue 2 invoices - one for the purchase costs, and the other for the loan.

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