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Solicitor's fees on BTL purchase

Posted by Rosemary Sheldon 25 Jan 2026 at 20:01
Are solicitor's fees on BTL purchase a deductible expense under 'legal and professional fees' (I'm exporting from Freeagent)?
What about mortgage consultancy fees (and Mortgage company fees)?
And council tax / utilities from purchase to start of first rental?
I've taken EPC / EICR / building survey costs as 'cost of sales'. Is this right? I'm trying to get in right before exporting.

1 Comment

T
Tim Fouracre Staff 25 Jan 2026 at 21:22
Solicitor's fees on purchase / building survey - These are capital costs, not deductible expenses. They get added to the property's base cost for capital gains when you eventually sell.

Mortgage arrangement/consultancy fees - Also capital. For companies these can sometimes be spread over the loan term as a finance cost, but they're not deductible in the year of purchase.

Council tax/utilities before first letting - These are deductible once categorised correctly in FreeAgent. They'd come through under Other charges in TinyTax.

EPC/EICR - These are revenue expenses (ongoing compliance costs for letting). They belong under Other charges rather than Cost of raw materials and consumables.

The key distinction: costs of acquiring the property are capital; costs of running it are revenue.