Agents' fees' deduction

Hi I have been renting out my flat since March 2022. It was the first time I was renting it out and I rent it out through a real-estate agency. Can I deduct the agents' recurring fees? thanks a lot

Hi Stephanie Duprat,

Recurring Estate Agents fees would be deductible.
For more information about rental deductions see: PIM2120 - Deductions: main types of expense: legal and professional costs 

Thank you.

Thanks a lot. I went to the page you mentioned and it says "The expenses incurred in connection with the first letting or subletting of a property for more than one year are capital expenditure and therefore not allowable. The expenses include, for example, legal expenses (such as the cost of drawing up the lease), agent’s and surveyor’s fees and commission. Expenses for a let of a year or less can be deducted." But you confirm that recurring real-estate agents' fees can be deducted even for the first year of the lease? thanks a lot

Hi Stephanie Duprat,
Thank you for your question.
Please can you confirm what you mean when you refer to the real-estate agents’ fees as recurring?
Thank you. 
 

Sure: instead of being invoiced the agents' fees for the 2 years' lease they negotiated with my tenant as a one off, they take a percentage of the rent each month. And I was wondering if I could deduct this amount. Thanks a lot

Hi
Thank you for your question.  
Agents fees are deductible from rental income, more information can be found in PIM2120:
Deductions: main types of expense: legal and professional costs

Thanks a lot but it says: "The expenses incurred in connection with the first letting or subletting of a property for more than one year are capital expenditure and therefore not allowable. The expenses include, for example, legal expenses (such as the cost of drawing up the lease), agent’s and surveyor’s fees and commission. Expenses for a let of a year or less can be deducted." It is the first time I am renting our this property, and I am renting it out for 2 years since March 2022. In these circumstances, are the agent fees taken each month as a percentage of the monthly rent allowable or not? thanks a lot

Hi
Thank you for your question.
You are referring to the HMRC guidance PIM2120.
Please refer to the prior paragraph in PIM2120 and confirm whether your agents costs are of a revenue nature and incurred in the purposes of  the rental business, which if they do are allowable.. 

Yes they are of a revenue nature, but as explained above I wasn't sure I could deduct them as it is the first time I am letting this property and I only started letting it in March 2022. But you confirm I can deduct them? Thanks a lot

Hi,
 

Thank you for your question yes they can be deducted  . Thank you