Question:
We had to pay a survey fee and also a Landlords’ Solicitors’ Fee for the purpose of extending the lease. Are these fees deductible against rental income?
Arthur Weller Replies:
Have a look on the HMRC Property Income Manual page PIM2205 (www.hmrc.gov.uk/manuals/pimmanual/pim2205.htm ). There you can see that it says:
"The normal legal and professional fees incurred on the renewal of a lease are also allowable if the lease is for less than 50 years."
However, there are some other conditions involved and it is necessary to read the whole page to decide whether the costs in your particular scenario are capital or revenue.
