Sale of rental property

Options
PGM
PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
This should be a simple question, that I should know..

When selling a rental property, how should you treat the estate agent/ solicitor fees ie cost of selling it, do they have to go as a cost against sale proceeds?

It would be better as a cost against rental income, as capital allowances would cover the rest, but I don't think that'd be allowable?

Comments

  • deanshepherd
    deanshepherd Registered Posts: 1,809 Beyond epic contributor 🧙‍♂️
    Options
    Yep, those are capital costs allowable against the profit on disposal. You can't claim them as a revenue expense against rental income.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Options
    Just the person!

    Many thanks, I can finish my self assessment now :)
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    Options
    Remember costs of acquisition as well
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Options
    Gem7321 wrote: »
    Remember costs of acquisition as well

    Well, it wasn't initially bought to rent out so I left them out. But capital allowances easily cover the profit, so luckily I don't need to worry about making too much...
  • Bluewednesday
    Bluewednesday Registered Posts: 1,624 Beyond epic contributor 🧙‍♂️
    Options
    Costs of acquisition are for the capital gain not the rental income so you did the right thing by leaving them out.
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    Options
    Sorry I misunderstood I thought you were asking in terms of completing the CGT calc
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Options
    Costs of acquisition are for the capital gain not the rental income so you did the right thing by leaving them out.
    Gem7321 wrote: »
    Sorry I misunderstood I thought you were asking in terms of completing the CGT calc

    Sorry I'm confusing everyone. I'm doing both rental income and CGT calculation. Maybe I should be in acquisition costs. I was ignoring the acquisition costs because it wasn't initially bought to be rented out, does that matter at all?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    Options
    Don't forget to exclude the time that it was occupied by the owner ...if that was the case before it was rented out.
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Options
    thankyou TC
Privacy Policy