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Is this tax deductible? Indemnity policy, solicitors fees

3 replies

HillyMillylunchmunch · 09/11/2018 07:57

I'm selling a flat which has been rented out for the last two years.
Therefore all my costs relating to the rent, eg fee for the BTL remortgage are tax deductible.

However I'm not sure how much, if any, of my sales costs are tax deductible.

If they're not deductible off my rental income are they deductible off my capital gains?

Costs are :

  • Solicitors fees regarding selling the flat
  • Indemnity policy re selling the flat
  • Any early redemption fee re the BTL mortgage? I don't think there will be one, but just checking while I'm here
  • Some costs paid relating to removing large rubbish items left by the tenants
OP posts:
Badbadbunny · 09/11/2018 18:56

Solicitors costs and indemnity policies are deducted from sale proceeds for capital gains tax purposes.

Removing rubbish etc is a running cost and an expense against rents received.

Early redemption fee would be added to finance costs to set against rents received.

ShalomJackie · 09/11/2018 18:58

Agree with BadBadBunny

HillyMillylunchmunch · 09/11/2018 23:13

Thanks 👍

OP posts:
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