Do I disallow these property expenses?

Cost of bailiff to repossess property let for first time under 3 year lease.

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Client paid £500 fee for bailiff to repossess property let to tenant under a 3 year lease ( not a relet). At the same time he paid the bailiff company £150 to replace the lock. Are these costs allowable or not in the property income calculation.

Replies (9)

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By ireallyshouldknowthisbut
22nd Dec 2017 10:26

Well what do you think?
Under what grounds would you allow it?
What grounds disallow it?
What is the specific point that is troubling you one way or other?

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Replying to ireallyshouldknowthisbut:
By penelope pitstop
22nd Dec 2017 10:37

The only thing disturbing me is that this falls under legal and professional costs in conjunction with a first lease of more than 1 year. If it were the legal costs of creating a lease of more than 1 year I would have disallowed, so why should I not disallow this one. But the replacement lock is included on the same invoice as the cost of getting the tenant out, so I would have been tempted to allow the lock cost but disallow the bailiff cost.
Or have I misunderstood the tax law.

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Replying to penelope pitstop:
paddle steamer
By DJKL
22nd Dec 2017 12:05

Surely the costs in effect pertain to debt recovery/ mitigation of future bad debts, in 20 years we have never taken possession of any of our property from a tenant except because they were behind with the rent.

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Slim
By Slim
22nd Dec 2017 12:02

is it a trick question?

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paddle steamer
By DJKL
22nd Dec 2017 12:09

"Other examples of allowable legal and professional costs that may be incurred include:"

"the cost of evicting an unsatisfactory tenant in order to relet the property."

https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2205

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Replying to DJKL:
Portia profile image
By Portia Nina Levin
22nd Dec 2017 12:11

That was a stroke of genius; your thinking to look in the property income manual!

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Replying to Portia Nina Levin:
paddle steamer
By DJKL
22nd Dec 2017 12:29

Portia

Still at your desk, no mad office party?

I will no doubt be getting a call this evening to chauffeur other half and her work colleagues (teaching staff have a remarkable ability to drink to excess especially when all gathered in a herd.)

I am on holiday and already bored or disinclined to expend any energy, hence sitting at midday posting on here rather than tidying up downstairs or clearing the accumulated pile of rubbish that is supposed to be taken to the skip.

Anyway thanks for the entertainment during the year and your endeavours to educate, albeit at times falling on stony ground.

Merry Christmas

Edit- Just realised that casting pearls before swine would have been a far more appropriate allusion.

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Replying to DJKL:
Routemaster image
By tom123
24th Dec 2017 10:05

I must tell my sister the collective noun for teachers is a herd :)

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Replying to tom123:
paddle steamer
By DJKL
24th Dec 2017 14:42

I used to have two sisters in the field. (funny, both have since escaped to do other things, anything but teaching)

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