Property Income

Options
jilt
jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
in General accounting discussion
Interest on a loan or mortgage to buy a property is allowable expenditure but does that include mortgage arrangement fees?

Are these fees classed as legal and prof fees and therefore not allowable?

Ok no problem finally got through to HMRC and they confirmed mortgage arrangement fees not allowable.

Comments

  • sloshed
    sloshed Registered Posts: 100 Dedicated contributor 🦉
    Options
    Hi Jilt

    I have come across your post and what HMRC would appear to go against there own guidance in the property notes.

    Box 7 Loan interest and other financial costs
    Include:
    • the costs of obtaining a loan or an alternative finance arrangement to buy
    a property that you let
    • any interest on such a loan or alternative finance payments.

    A link to the full document is below

    http://www.hmrc.gov.uk/worksheets/sa105-notes.pdf

    Hope this helps :001_smile:
  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
    Options
    Thanks sloshed, now why am I not surprised! :confused1: I'm going to allow the arrangement fees then seeing as I have it in black and white. The poor guy is already gutted cos he thought he could claim the legal fees on purchasing the properties.

    Thanks again :thumbup:

Categories

Privacy Policy