Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Wed, 17 Jan 2024 15:40:15 GMT by MrsPeacock
So last year I pulled out of the rental market and sold my sole rental property. When I was completing my Capital Gains tax paperwork at the time I spoke to HMRC on the phone and was told by the chap I was speaking to that I couldn't include the early repayment charge on my mortgage as a cost, but that I could include it on my costs for my annual tax return. I'm now completing this tax return and can't see where I would put this charge down, and I've now read conflicting guidance that says you can't include a mortgage early repayment charge at all so now I'm confused. Can anyone help please? Can I definitely include the early repayment charge on my mortgage as a cost and if so, where do I put it on my tax return? Thanks in advance!
Posted Fri, 19 Jan 2024 12:13:55 GMT by HMRC Admin 21 Response
Hi MrsPeacock,
Its not clear whether you ceased having income from property in 2022/23 or 2021/22 tax year. The financial costs you mentioned relate to income form property and not connected with capital gains as they are not a capital expenditure (which can reduce a CGT bill). I'll need details on when this repayment charge took place and when you ceased the operate as a landlord. I suggest you call HMRC to discuss the details.
Thank you.
Posted Fri, 19 Jan 2024 14:04:23 GMT by MrsPeacock
Hi, I ceased having income from property in 2022/23 tax year. The repayment charge took place in that tax year when I sold the property. I have tried to ring HMRC but am left on hold so long that the phone line eventually cuts out.
Posted Mon, 22 Jan 2024 13:57:29 GMT by HMRC Admin 8 Response
Hi,
We apologie for the problems you have experienced in contacting HMRC
Unfortunately, this forUM can only give general advice. As your question relates to your personal tax affairs, WE suggest you try again by telephoning, requesting you wish to speak to a technician or write to us at HMRC BX9 1AS.
Thankyou.

You must be signed in to post in this forum.