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Tax deductible expenses for landlords

Are estate agent and legal fees for a property sale tax deductible

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Hello,

I am an accidental landlord who is looking to sell my (personal) buy to let later this year. I would like to know if the estate agent and legal fees for the sale are tax deductible or not. On the HMRC website they say:

"You can't claim any expense that was not incurred solely for your rental property business". 

But I am not sure whether a sale would fall into this category or not and I can't find any other information online re this scenario. 

Any guidance would be much appreciated. 

Dipesh

 

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By lionofludesch
12th Jan 2020 10:11

You're looking at the wrong tax.

Solicitor's fees and estate agent's fees are deductible from the gain you make on the sale of the property which is subject to Capital Gains Tax.

They're not allowable for income tax.

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By Dipesh747
12th Jan 2020 10:45

Thanks for the reply. In my situation I will be well under the CG threshold as I lived in the property for many years, so not useful for me! Thanks for confirming the tax situation.

Dipesh

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By lincolnartist
13th Jan 2020 08:04

Doesn't mean you don't need to show it on a tax return. But your accountant will sort that out for you......

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By JoF
12th Jan 2020 10:19

Last post 'I have a meeting with an accountant scheduled for next month', when you mentioned putting your property into a limited. Don't forget to this to the list for discussion.

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