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Expenses or capital - fees incurred when purchasing BTL property

Started by SMO123, March 19, 2023, 01:37:15 PM

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Please can someone advise which solicitor fees incurred whilst purchasing a BTL property, can be treated as expenses and be tax deductible, and which one are capital, i.e. as Stamp Duty and can reduce CGT?

I'd really appreciate if you could shed some light on this?

File opening fee                                                           £50
ALM check                                                                    £20
ALM check                                                                   £20
Search pack                                                                   £199
Legal Fees                                                                   £450
Bank TT Admin Fee                                                   £42
Leasehold Fee                                                           £180
Mortgage Admin Fee                                                   £120
Limited Company Fee                                                   £120
Thirdfort ID Verification Fees                                           £36
Acting for Lender Fee                                                   £180
Post Completion Formalities and Administration Fees   £180
InfoTrack search fee                                                   £33.50
AP1 Submission Fee                                                   £4.80
SDLT Submission Fee                                                   £4.80
MR01 Submission Fee to Companies House                   £20
Land Registration Fee                                                   £100
ILA                                                                                   £250
ILA                                                                                   £250

TOTAL (including VAT)                                                   £2,260.1

Simon Pambin


Thanks for the prompt responses :) 

I thought that fees related to purchase of the property are capital costs, but the fees that the solicitor charges for facilitating the mortgage and fees related to taking a loan, can be tax deductible, so at least the below:

- Mortgage Admin Fee - if purchase is finance by a mortgage.

- Acting for Lender Fee - costs involved in dealing with new mortgage lenders requirements and/or discharging an existing mortgage.

- ILA - legal advise directors need when loan is taken out to buy a property within a company