pugsy Posted November 21, 2007 Report Share Posted November 21, 2007 You know when you're all doing your books. Is the valuation fee on a btl house purchase a revenue or a capital expense. (Note, not a remortgage but straight purchase). Thanks. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 21, 2007 Report Share Posted November 21, 2007 I think it will be capital as it comes under "set up" costs ...to be claimed by your future great grandkids when they eventually decide to sell your empire ! Simon Link to comment Share on other sites More sharing options...
pugsy Posted November 21, 2007 Author Report Share Posted November 21, 2007 That's what I thought and all my books say the same, I just had some plank arguing with me about it... thanks. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted November 21, 2007 Report Share Posted November 21, 2007 Hi Pugsy To complicate things one of my T is a trainee tax inspector....... He tells me that it possibly could be allowed as a trading expense (income not cap) if you declare yourself as Trading properties as opposed to for btl .... But he wasn't sure !!! Plym wherefore art thou ?? Simon Link to comment Share on other sites More sharing options...
plym77 Posted November 29, 2007 Report Share Posted November 29, 2007 apologies Simon - I have been off the radar for a few weeks but am back now! A valuation fee on the purchase of a house is a Capital Expense. Trading expense yes if you are buying properties to sell on at a profit - this is because this is a trade rather than an 'investment' (ie BTL). I would also argue that fees incurred on a remortgage would be allowable expenses for revenue on the basis that this is re-finance as opposed to purchase costs. Hope this helps Sherena Link to comment Share on other sites More sharing options...
odecar Posted December 1, 2007 Report Share Posted December 1, 2007 A valuation fee on the purchase of a house is a Capital Expense. Trading expense yes if you are buying properties to sell on at a profit - this is because this is a trade rather than an 'investment' (ie BTL). I would also argue that fees incurred on a remortgage would be allowable expenses for revenue on the basis that this is re-finance as opposed to purchase costs. Hope this helps Sherena Can it be treated as a revenue expense ? or do IR get shirty about it. Link to comment Share on other sites More sharing options...
pugsy Posted December 1, 2007 Author Report Share Posted December 1, 2007 One LL i know tells me he claims it as an incidental finance cost for Revenue, even though he is in letting not trading. It seems straight forward to me, or we'd all be claiming all sorts as incidentals. Link to comment Share on other sites More sharing options...
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