UK Property 29 - Legal, Management and other Professional fees

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Management fees paid to an agent to cover rent collection, advertising and similar administrative expenses can be deducted.

The normal legal and professional fees for renewing a lease, if the lease is for less than 50 years, can be deducted. You can also deduct the professional fees incurred in evicting an unsatisfactory tenant, with a view to re-letting, or in appealing against a compulsory purchase order.

You cannot deduct:

• expenses incurred in connection with the first letting or subletting of a property for more than a year. These include legal expenses such as:
  • the cost of drawing up a lease
  • agents' and surveyors' fees and commission
• any costs of agreeing and paying a premium on renewal of a lease
• fees for planning permission or registration of title on property purchase