Discharge fee

02/05/2019 12:32:48
We recently paid off a loan on our rental property. We were advised to arrange for a solicitor to obtain a Discharge registration for the property. This means that if/when we sell the property there are no other interests ( the bank ) registered against the property. Up until the loan was paid there was an 'interest' in the property of ourselves and the bank.
We are in Scotland.
Is this fee an allowable expense for our tax return?
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Re:Discharge fee

03/05/2019 07:02:38
Hi Matthew,

Thanks for your question.

The Discharge Registration is not an expense incurred in the running of the rental business, so it is not an allowable expense in the rental accounts. It is a capital expense which may be claimed/included in any calculation of capital gains on the sale of the property.

I hope this helps.