Aborted Buy to let property purchase

[Tom Gregz]

Our client has one existing rental property and has been seeking a 2nd buy to let property.
This year they had a potential 2nd buy to let property purchase fall through, due to the seller pulling out.
The client incurred solicitors costs, surveyors costs, travel, hotel and printing expenses during this aborted purchase process.
Would all of these be allowable rental property expenses?

[bd6759]

Of course not. It’s capital expenditure..

[Tom Gregz]

For a trading business, had you had costs/expenses associated with an asset purchase that did not in the end materialise, the costs would be expensed as revenue costs.

[bd6759]

Yes, they could be a deduction in the accounts, but they would be added back for tax. ECC Quarries v Watkiss.