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Tax return - can mortgage set up fees be offset?


reph4444

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Can i add the following to my Tax self assessment in the "Expenses for other property income" section ?

Note: Arrangement fee and mortgage account fee were added to my mortgage

Mortgage Fees:- Arrangement fee (+ to mortgage) Valuation fee Telegraphic Transfer Mortgage account fee (+ to mort) Lender Conveyancing Fee

Can anyone also advise which section they should go under?

i.e.

Loan interest and other financial costs

or

Legal, management and other professional fees

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Can i add the following to my Tax self assessment in the "Expenses for other property income" section ?

Note: Arrangement fee and mortgage account fee were added to my mortgage

If those particular costs were added to your mortgage loan then you haven't actually incurred any expenditure so no you can't claim the costs. You can claim the interest payments on the loan though.

Any other costs for getting a mortgage should be amortised over the term of the loan. I'd probably put the valuation fee & telegraphic transfer in sect 26 and the conveyancing fee in sect 27 once I'd amortised the figures so that I claim the same amount each year over the term of the mortgage.

section 26....Loan interest & other financial costs

section 27....Legal, management and professional fees

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