JerryB
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Tax treatment - tenant compensation payment
Hello, I have a client who sold a rental property in 2022 and since then, the last tenant in the property has been threatening to take my client to court, claiming the property was unfit for purpose. My client has now entered into a settlement agreement with the tenant and made a small compensatory payment to this tenant. I was just wondering if this this payment is tax deductible on her self assessment? Whilst she no longer owns this property, she owns a couple of other properties so still declares property income and expenses, Many thanks -
Legal defence cost on self assessment
Hello, I recently sold a rental property and as part of the process had to serve notice to the tenant before the sale went through. The tenant is now suing me - claiming that the property was not fit for purpose and I am having to incur legal fees for my defence. Would these be allowable on my self-assessment? Thank you