Remortgage Costs

[malm]

I bought my first BTL back in 2004 by releasing equity from my main residence. I re-mortgaged the BTL property in 2005 and then in 2006 to release some funds.

Can I claim the various fees (solicitors, surveyor, broker fees, etc) associated with the remortgages as an expense for income tax purposes or do I wait until I sell and include them as part of the overall cost for CGT purposes ?

[Tax Accountant]

I bought my first BTL back in 2004 by releasing equity from my main residence. I re-mortgaged the BTL property in 2005 and then in 2006 to release some funds.

Can I claim the various fees (solicitors, surveyor, broker fees, etc) associated with the remortgages as an expense for income tax purposes or do I wait until I sell and include them as part of the overall cost for CGT purposes ?

Therse are all financing costs and claimable as an expense of your lettings business, ie against rental income.

Ramnik

[malm]

Thanks Ramnik. Would the same apply to a lender fee where the fee was added to the mortgage or would that be treated as part of the base cost for CGT ?

Thanks .... malm

[Tax Accountant]

Thanks Ramnik. Would the same apply to a lender fee where the fee was added to the mortgage or would that be treated as part of the base cost for CGT ?

Thanks .... malm

Yes, this is still an allowable cost of your lettings business.

If you think about it, interest is also added to the mortgage account but is still an expense of the lettings business.

Only payments which are to do with buying the property or capital expenditure for improvements are allowable for Capital Gains.

Ramnik

[malm]

Thanks again for your input Ramnik, much appreciated.

Rgds .. malm

[Tax Accountant]

Thanks again for your input Ramnik, much appreciated.

Rgds .. malm

OK You are welcome.

Ramnik
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