Tax

[dmm]

Just bought 2 new build flats & will let out . can you claim all the costs of buying the place ie sols fees ,search fees,bank transfer costs,,bankruptcy searchs,land registry fees etc etc when you do the yearly accounts.

have 2 places already let but never bought from new always moved then let old house.

Thanks

[neilhw]

From my understanding, the costs incurred in buying the place are pretty much off limits for your annual accounts - they're classed as capital & not revenue. They can, however, be off set against capital gains when you come to sell.

Neil.

[plym77]

Hi dmm

The costs involved in purchasing the house, for example solicitors fees, stamp duty, searches etc cannot be claimed in the year accounts. These costs are taken in to account in reducing the capital gain should you sell the property

I hope this helps

regards

Sherena

[dmm]

thanks guys i think thats cleared that one up

[dmm]

so does that mean when i sell the houses i owned & lived in before i moved out of them ,i can deduct all my sols fees etc from my final CGT bill

[plym77]

No, the costs reduce the calculated gain, effectively:

Proceeds (less costs of sale)

Less: Purchase (plus costs of purch**)

Less Indexation (if any)

Less: Exemptions (PPR. Lettings Relief etc)

Less Taper Relief

Less Annual Exemption (if not used already)

Balance at tax rate

**this being your original purchase costs - stamp duty, solicitors fees etc

I hope this clears matters up for you

Regards

Sherena