Hi all,
Have a situation where a client is charging a business for a licence to walk over his drive way, there is no exclusive use for either party. Other than the legal costs for the agreement, are there any other deductible costs? I assume it is not possible for any interest deduction, but can't think of any others.
Many thanks
Replies (2)
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Cannot think of that many costs., but do consider the undernoted from HMRC:
"The expenses incurred in connection with the first letting or subletting of a property for more than one year are capital expenditure and therefore not allowable. The expenses include, for example, legal expenses (such as the cost of drawing up the lease), agent’s and surveyor’s fees and commission. Expenses for a let of a year or less can be deducted."
https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120
My only non tax caveat (and your mention of legal fees gives some reassurance) is I certainly would never grant anyone access rights over a property I owned unless I was absolutely certain, backed up by legal advice and professionally prepared documentation , that I was not leaving myself open to the other party acquiring rights that might later be hard to extinguish; there are odd areas like agricultural land, telecoms, utilities where nasty things can happen.