Property Tax - expenses of failed purchase

[Just.asking]

Hi there,

I run a small property portfolio (only 2 properties actually!)

I paid out finders fees and other expenses relating to the aborted purchases of a couple of other properties.

Would these expenses be tax deductible against my other income from property?

The finders fees come to quite a large amount of money and I don't really want to write them off for tax purposes if I can help it!

Thanks!

[David Griffiths]

Not the answer that you want, but the fees that you describe are capital and can't be set against rent even if the purchase is successful.

If the purchase is successful, the fees are part of the cost of the asset and taken into account for capital gains purposes when the asset is sold.

In this case, you haven't acquired an asset, so there is no relief anywhere.