News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 2001 issue RPI news archive

Lease preparation costs to be disallowed - June / July 2001

A change of practice at the Inland Revenue means the costs incurred by landlords in entering into new leases of more than one year will not be allowable against taxable rental income.

Previously this was the case only if the lease exceeded 21 years. But a new interpretation, included in the revenue publication IR150 on The taxation of rents says that no deduction for professional fees in connection with a new letting of more than one year will be allowed since this amounts to capital expenditure. However, the costs of renewing leases of less than 50 years will be allowable provided a premium is not involved.
 

other artilces from the June / July 2001 issue

• Asylum seeker threat
• Earnings link points to house price fall
• Dome Minister takes on housing
• New landlords should look to the long term
• Where tenant must act as tax agent
• 'Reasonable steps' absolve blam
• Easy does it
• House prices still risingt
• Alternative to gas
• Regeneration VAT incentive falls down
• Lease preparation costs to be disallowed