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Tax relief for buying costs?

09/05/2019 10:51:19
I'm unsure what tax relief I can claim when buying a Buy to Let property. Specifically can I claim relief on Solicitors costs/disbursements, pre-purchase condition survey, necessary redecoration and new furnishings such as carpets, letting agent costs to find/vet a tenant?

Thank you
Steve Hutchinson
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Re:Tax relief for buying costs?

09/05/2019 12:19:55
Hi Steve,

Thanks for your question.

Please see the following link for details of the types of expenses you can claim:

Income Tax when you let property: work out your rental income

Please also see the following for guidance on pre letting expenses:

PIM2505

I hope this helps.

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Tax relief for buying costs?

09/05/2019 14:40:38
Thanks - I have had a look as you suggest but I am not a great deal wiser. I THINK - I am allowed to claim tax relief against solicitors costs/disbursements, survey fees, replacement carpets etc (same standard as already fitted) and tenant find/vetting fees as these costs are solely and exclusively connected with acquiring and letting the property. Am I correct? Thanks again.
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Re:Tax relief for buying costs?

10/05/2019 12:51:01
Hi

Thanks for your further question. As per the following link

PIM 2505

the replacement of carpets and letting agents fees are allowable as revenue expenditure against the rental income. However, the legal costs incurred in acquiring or disposing of a property are non-allowable, but they may be allowable in computing any capital gain on the disposal of the property. Please see the following link for further guidance.

PIM 2120

I hope this helps
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Tax relief for buying costs?

10/05/2019 13:51:05
As an agent, I will explain it to you. Solicitors' costs/disbursements, survey fees, stamp duty are not allowable and are capital costs. They would be claimable in a capital gains computation when you eventually sell the property. If the property could have been let in its current state any expenses in replacing carpets and redecoration are allowable against your letting income. Tenant find/vetting fees are allowable.
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Tax relief for buying costs?

13/05/2019 08:21:49
Thank you both - your help has been really useful and I am now much clearer on the rules!

Regards
Steve

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