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HMRC internal manual

Property Income Manual

Deductions: main types of expense: fees for loan finance and similar items


Incidental 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 PIM2010). These costs include loan fees, commissions, guarantee fees and fees in connection with the security of a loan.

If the customer is a company these costs will fall under the loan relationship rules.