Tax deductibility of real estate broker agency fee

Hi, I would like to clarify the meaning of the following excerpt from the Income from land and property abroad in the self assessment form: "You cannot deduct: for more than one year, expenses incurred in connection with the first letting or subletting of a property. These include legal expenses such as: the cost of drawing up a lease, agents' and surveyors' fees, commission" I have a foreign rental property which I let out for two years. The real estate broker's commission for bringing me the tenant is $1,800. Can I deduct $900 (being one-half) in the first year of lease? Can I deduct the remaining one-half ($900) in the second year of lease? Thank you.

Hi,
No, as it was not deducted over 2 years.
Thank you.

Thanks for the reply. Do you mean that the agency fee is not tax deductible because the tenancy is longer than one year?

Hi ,
 

Thank you for your question. Unfortunately, from your previous queries, I am unable to trace any advice regarding agency fees requested. In relation to Agents fees, PIM2120 refers, legal and professional fees such as Agency fees are not deductible if in connection with the first letting or subletting of a property for more than one year and are classed as capital expenditure. Further information can be found within see: PIM2120 - Deductions: main types of expense: legal and professional costs  . Thanks  .

Understood. Many thanks for the clear answer!