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Smiler
01-09-2010, 21:10 PM
Bought a flat purely to Let.

Can I offset the following against Tax?

The mileage allowance to view the property before purchase
The legal Fees involved to purchase the property
The disburstments involved to purchase the property which included Land Registry fees, Engrossment of Lease fee, Various searches and Chancel Liability insurance

Smiler
01-09-2010, 21:55 PM
Looking back on previous posts it looks like the purchase costs can't be offset.

Upon searching I realise the mortgage application fee can be offset over the lifetime of the mortgage.

Some further questions....

Can I assume that mileage allowance can't be claimed before purchase (whilst viewing the property before purchase), but obviously can be after (whilst attending to property prior to let) and during let.

I am also currently assuming that the loss of one BTL can be offset against the profit on another BTL

Telometer
02-09-2010, 07:19 AM
Add up the entirety of your profits and losses from lettings, that total is your total "income from land". (If any of this is held in a partnership, or is a furnished holiday let, or a room let in your house, or if anything is let to a friend/relative at below cost then the answer may be different.)

Mileage allowance is not allowable if you have a letting agent (or it is, but only the distance from his office to the house, not your home).

Smiler
02-09-2010, 19:18 PM
No agent involved

Telometer
02-09-2010, 19:33 PM
In which case, provided the travel is wholly & exclusively for the purposes of your lettings business, then the mileage is allowable.

All the other costs you mention may be offset against CGT on eventual sale of the property.