UK Landlord Forum / Life

I am in the process of purchasing the freeholds on 3 studio flats.The total cost including legal fees and resetting to 999 years is going to be in the region of £25,000.Is any part of this tax deductible? Googling is suggesting I can only claim this against CGT if I come to sell them,rather than my annual taxes. Also,will the long lease have an immediate bearing on the valuation,or will it still be down to local market  prices?

Yes, it's capital rather than revenue expenditure, so the cost of the freehold and associated legals will go into your CGT calculation when you sell, rather than against rental income. As to the effect on the current value, it partly depends how long was left on the original lease but, as you say, it's mainly down to the market - it's still worth what somebody's prepared to pay for it!

Many thanks,not planning to sell,but some of the others, are so I will tell them the good news re.C.GT.