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Allowable/Capital Legal Expenses on Purchase


dino v

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Sure I've seen the answer to this somewhere, but can't find it on here anywhere or from Googling. We're approaching the end of our first tax year as a limited company and have a few property purchases under our belt. Although the accountant will do the submission, I'd like to get my paperwork correct beforehand, so, of the legal costs of the purchase, what is allowable as an in year expense and which only count towards the capital gains in years to come?

Thinking of things like stamp duty; searches; solicitor fees; additional fees for ltd company mortgage; bankruptcy checks etc, etc.

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2 hours ago, debbie franklin said:

Only those relating to the obtaining of finance are allowable against rent. The rest are related to the purchase of the asset and allowed against capital gains in due course.

So would that mean for a property bought for cash, none of the legal expenses are allowable? And, on the flip side, if you subsequently remortgaged, all the legal expenses relating to that would be allowable?

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