Redemption Fees vs Capital Gains

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    Redemption Fees vs Capital Gains

    Hi,

    I am selling buy to let property and I am attempting to calculate my capital gains tax, can someone tell me if I can offset my buy to let mortgage early redemption fees against my capital gain or would I offset it against my rental income for that year?

    Thank you

    #2
    Funding fees (including redemption fees) are part of trading, not capital.
    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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      #3
      As I will be buying another property with the proceeds of my sale to rent again, I can then offset the early redemption fees / funding fees against my rental income then, as I'm still trading?

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        #4
        You basically cease trading on disposal if you only have the one property - so strictly speaking, probably not.
        If the gap is very short, you may be able to make a case otherwise, but it's a bit of a stretch (in my view).
        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

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