Restricted Finance Costs for BTL - yes/no what basis?

[anjo56]

My son is filling in his first tax return for a BTL bought in 2019. He understands that the mortgage interest allowable as an expense is limited to 25% for 2019-20 but what about the £999 mortgage arrangement fee with the bank, the £35 telegraphic transfer cost? He thinks these are restricted too but wonders if the mortgage advisor fee of £295 is a restricted finance cost too or can be claimed in full as professional fees? The solicitor's bill also has items for mortgage lender fee and telegraphic transfers. Can these finance items be used in his tax return too - restricted to 25%? Hopefully, a quick answer is out there! Thanks for your help.

[bd6759]

Costs of finance are restricted as well as the interest.

S272B(5)(c) Income Tax (Trading and Other Income) Act 2005

[maths]

Don't forget that whilst a deduction for costs of a dwelling related loan are limited (25% in 19/20) there is in addition a basic rate tax reducer for the balance.

[anjo56]

Got it. Many thanks, both.