When making the first tax return on a rented property, can I offset the deposit, the solicitor's fee and the stamp duty against tax?

Arthur Weller replies:
I presume the 'deposit' means the first payment for the purchase of the house. These three items relate to the purchase of the house and are therefore considered to be 'capital expenses'. They cannot be entered on the first tax return for a rented property, to offset against rental income. Instead, when the property is eventually sold they should be entered on the capital gains supplementary pages of the tax return, to be offset against the capital gain. See HMRC’s guidance here: www.gov.uk/hmrc-internal- manuals/capital-gains-manual/cg15250.