Tax Offset for Mortgage Fees - Against Income, or Cap Gains?
Tenancy Deposits

Matty
Matty
1 Thanks
6 Posts
14 years ago
0
Hi

Question - The initial fees for the BTL mortgage arrangement - by this I mean the extortionate 1500.00 arrangement fee, 99.00 Admin fee, and 350.00 Valuation survey fee...

I know these fees can be used to offset taxable benefit, but it's not clear for me which offset: Rental Income or Capital Gains when I sell the house.

i.e. - Are these fees considered like the Conveyancing fees, and only tax off-setable against Capital Gains when you sell the property (i.e. 'Purchase Costs')

OR

Are they considered the same as the interest charges associated with a rental property, and off-setable immediately against the rental income...

Thanks - guidance is appreciated!!

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