odecar Posted October 28, 2007 Report Share Posted October 28, 2007 Taken out quite a few mortgages this year with lots of arrangement fees added to the loan. My take on this is that the arrangement fee is fully allowable against tax provided you do not claim the interest that you pay on it. Therefore a 2k arrangement fee comes off income BUT you must reduce your yearly int claimable by 2k x int rate so on a 5.24% mortgage reduce by £100. Link to comment Share on other sites More sharing options...
plym77 Posted October 30, 2007 Report Share Posted October 30, 2007 Providing the fee was directly related to your Buy to Let mortgage and in connection with your Buy to Let business, I see no reason why you cant claim a deduction for both the arrangement fee and the interest - providing the total mortgage does not exceed the value of the property when it was first introduced to your letting business. I hope this helps Regards Sherena Link to comment Share on other sites More sharing options...
odecar Posted October 30, 2007 Author Report Share Posted October 30, 2007 Thanks it does. Remortgaging and using money to buy another prop so also allowable. Link to comment Share on other sites More sharing options...
plym77 Posted November 1, 2007 Report Share Posted November 1, 2007 agreed Link to comment Share on other sites More sharing options...
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