Mortgage expenses for rental propery

[sober]

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sorry - being new to the forum - i didnt realise i was sending a private message to message box - just discovered it when I didnt find it on the forum. Perhaps you don't see or approve of private messages.
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Hi Ramnik,

I am a new member and have read your advice and tips with great interest, and am truly impressed by the depth and breath of your expertise in Taxation and property matters.

I have one BTL and hope to expand sometime in the future.

Somewhere in this forum I read that the costs of buying a property are not allowed against taxable income from it.

I agree that most of these charges are incurred in the course of acquiring the asset, such as
valuation fee, solicitors fee, searches, land reg fee, and SDLT. however i would have thought that the loan application fee or broker's arrangement fee should be allowed as expense if the BTL business is ongoing and one were expanding the portfolio. Same as for bank overdraft fee.

Especially in the case where funds are raised on an existing property and used later to buy another. Or if an auction property is bought using a bridging loan of say three months and remortaging to replace the existing more expensive loan with a proper BTL loan. Woud'nt refinancing for a better interest rate be considered a business activity?

your thoughts and views will be most valued.

Regards
Mariam

[Tax Accountant]

--------------------------------------------------------------------------
sorry - being new to the forum - i didnt realise i was sending a private message to message box - just discovered it when I didnt find it on the forum. Perhaps you don't see or approve of private messages.
------

Hi Ramnik,

I am a new member and have read your advice and tips with great interest, and am truly impressed by the depth and breath of your expertise in Taxation and property matters.

I have one BTL and hope to expand sometime in the future.

Somewhere in this forum I read that the costs of buying a property are not allowed against taxable income from it.

I agree that most of these charges are incurred in the course of acquiring the asset, such as
valuation fee, solicitors fee, searches, land reg fee, and SDLT. however i would have thought that the loan application fee or broker's arrangement fee should be allowed as expense if the BTL business is ongoing and one were expanding the portfolio. Same as for bank overdraft fee.

Especially in the case where funds are raised on an existing property and used later to buy another. Or if an auction property is bought using a bridging loan of say three months and remortaging to replace the existing more expensive loan with a proper BTL loan. Woud'nt refinancing for a better interest rate be considered a business activity?

your thoughts and views will be most valued.

Regards
Mariam


Yes, I don't normally see or respond to private messages.

And yes, broadly speaking all the sort of expenses mentioned in your reply will be allowable on the basis that they haven't been incurred in acquiring or improving the property but simply running the lettings business just like any other business.

I think I have covered this subject in more detail in the past; perhaps you will look this up at your convenience.

I hope this helps.

Ramnik

[sober]

Thanks Ramnik

Yes, I think I have got better hang of this forum and will be able to explore my way though the past posts.

Best regards.

[Tax Accountant]

Thanks Ramnik

Yes, I think I have got better hang of this forum and will be able to explore my way though the past posts.

Best regards.

You are welcome. Try and pay it forward by helping others when you have no obligation to do so.

If you come across the previous thread, please bring it back into play for others to refer to it.

Ramnik