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HMRC internal manual

Property Income Manual

HM Revenue & Customs
, see all updates

Deductions: General rules: Main types of expenses: Fees for loan finance etc.

Costs incurred in obtaining loan finance for a rental business are generally deductible in computing rental business profits provided they relate wholly and exclusively to property let out on a commercial basis (see PIM2005). These costs include loan fees, commissions, guarantee fees and fees in connection with the security of a loan, (ICTA88/S77 or ITTOIA05/S272).