Lease Extension - Tax Relief

[Meridianman]

As usual I've left this years tax return to the last minute..

This year we had to extend the lease on a rental property at a cost of £18,000 for the lease itself plus an extra £1,803 in solicitor costs etc.

Can we claim relief on some or all of these costs in this tax return or only for CGT purses when we come to sell at a later date?

Many thanks

[buildersmate]

I'm not going to give you specific advice - that's what you employ a tax accountant for, but the place you need to look for the answer is here:
http://www.hmrc.gov.uk/manuals/pimmanual/index.htm

More specifically, look in PIM2200, which is a sub-set of PIM1900 on expenses

[Peter Pedant]

Buildersmate ! hero of the revolution - I will spend many many happy hours on that.

Solicitors costs are clearly claimable as an expense

as you have said extending a lease for £18 000 is clearly a capital expense
unless you borrowed money for the 18k in which case the interest but not the capital repayment wouild be.

and no I havent read the PIMM modules yet.

I was looking for something to do tonight

[Meridianman]

Thanks guys. Appreciate the help.

[Peter Pedant]

PIM 2205 covers legal fees