Hi,
If the bank charges a Consent to Let fee for renting out a residential property , where do we enter the fee in the Self Assessment?
Is it in the box - UK Property 31 - Other Allowable property expenses
Thanks
Yes you can claim it because it is incurred only because you are letting the property. But, I would say it is a finance fee so would go in the box with the mortgage interest. Therefore, not tax deductible but eligible for the 20% tax credit.
Per HMRC:
Finance costs includes mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans.
And
The restrictions apply in respect of:…
Any incidental costs incurred in obtaining the loan. This includes items such as fees or commission payments, but would exclude, for instance, exchange rate losses on a loan taken out in a currency other than sterling.