X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Tax

    Conveyancing fees - which are revenue?

    Hi All,

    I am in the process of preparing my first years figures for the tax return.

    I would be grateful if anyone could advise on the below items are claimable now or capital costs.

    The solicitors 'professional charges and vat costs involved with the purchase are capital -

    what about the rest?

      £

    Our Professional Charges in connection with your purchase

    VAT thereon

    Administration fee for Telegraphic Bank  Transfer

    Out of Pocket Expenses

    Solicitors Check Search (if required)

    Local Search

    Drainage Search

    Coal Mining Search

    Environmental Search

    Official Search

    Land Registry Registration Fee

    Stamp Duty Land Tax

    many thanks and look forward to your replies

    ryan.

    0
    0

    Hi

    All of the costs associated with purchasing the property are capital.  Accordingly all the searches, professional fees plus VAT, land registry fees and Stamp Duty Land Tax are capital and none of these can be deducted from the rental income.   Although you have not mentioned it if you paid a Sourcing Fee to someone who found the property for you then that is also capital and not deducted from rental income.

    Regards

    Nigel

    0
    0

    I rang HMRC and I was informed that valuation fees are revenue if your using a mortgage

    0
    0

    Learn Change and Adapt ?????


    No sourcing fee as found through estate agent.

    0
    0

    It was a free valuation for the purchase.

    **************************

    Telegraphic transfer??

    Because this costs relates to the 'finance' Costs relating to mortgage  - £35 for telegraphic transfer of money can be claimed?

    0
    0

    Where the telegraphic transfer relates to the mortgage being sent to the Solicitor by the mortgage company the that is part of the finance costs and deductible from rental income.  However where it is in connection with the Solicitor sending the money to the seller of the property then that charge is part of the purchase price of the property.

    The first transaction is related to the borrowing of the money whereas the other is connected to the purchase of the property so although they are both transfer fees it is the purpose of the transfer which dictates the tax treatment.

    0
    0

    We put our sourcing fees against tax but not the legals. Accountant didn't have a problem with this..

    0
    0

    Sourcing fees are the cost of finding the property and therefore part of buying the property in the same way that Estate Agents fees are part of the selling costs of teh property.  they should therefore be capitalised rather than deducted from the rental income.

    1
    0