I’m a private landlord extending the lease of a property, which has been owned for around 20 years and rented out for 10 years. Are the costs of extending the lease allowable expenses in my personal tax return (i.e. solicitors fees, valuation, negotiation costs with third party)?

If you look at HMRC’s Property Income manual at www.gov.uk/hmrc-internal-manuals/propertyincome-manual/pim2120, you can see that it states: ‘Generally, the fees are capital if they relate to a capital matter, such as the purchase of property.’ In addition: ‘The normal legal and professional fees incurred on the renewal of a lease are also allowable if the lease is for less than 50 years.’ If your lease extension is for more than 50 years, these other expenses will be capital expenses.