Tax Relief for Break Penalty

[Thedavman]

I reently disposed of a investment property. I had a fixed term loan with the bank in respect of this property and unfortulately suffered a considerable break penalty. As the rents ceased prior to disposal I presume I cannot offset the break penalty against the rents however, can I offset the break penalty against the gain on disposal?

 

[Nige]

No. Financing costs (including break penalties) can be deducted in computing your gain.