Tax (England)

Mortgage arrangement fees

31 Jul 2016 | 2 comments

When I bought my rental property it was with an interest only NatWest BTL mortgage. There was an initial arrangement fee which I offset against income for tax purposes.. Last year the initial 2 year tracker rate deal expired and I decided to go for a 5 year fixed rate. I paid a £1999 arrangement fee to the bank for this….

My question is whether I can deduct this 2nd fee against rental income in the tax year 2015/2016. I did not change the level of borrowing at all but paid the fee in full from our BTL current account.

Clearly I hope the answer is yes!

Thanks for your advices.




  1. guildy

    Tax isn’t our strongest subject so you should check with your accountant before putting through. However, I see no reason why the fee can’t be put through.

    It is a genuine expense solely for the business which is the general criteria.

  2. jan1868

    Hi, my accountant always tells me that any arrangement fees can only be offset against tax when I sell any of my rental properties and that they’re the ‘wrong’ type of expense to offset against rental income.

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