Deductible Expenses from investment income?

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Is that the management fee from the Asset Management firm tax deductible? situation 1: if the portfolio is 100% gilts or gilts relate index; situation 2: if the portfolio is mixed of gilts and corporate bond and shares; situation 3: the portfolio contains shares and corporate bond but no gilts?

Many thanks in advance!

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Portia profile image
By Portia Nina Levin
19th Jan 2017 15:51

For an individual?

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By tonycourt
19th Jan 2017 15:53

If the investor is an individual then the answer is no in each instance.

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By ShawnWong
19th Jan 2017 16:15

Many thanks! yes, it's for an individual. what's the logic or rules behind this?

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By tonycourt
19th Jan 2017 16:24

There's no "logic" as such. The legislation simply doesn't provide for deductions from investment income. There are several ancient legal precedents as well.

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paddle steamer
By DJKL
19th Jan 2017 16:30

Looking for logic in tax can often be akin to the quest for the philosopher's stone and likely will result in madness enveloping the seeker.

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Portia profile image
By Portia Nina Levin
19th Jan 2017 16:38

The logic is that there is legislation to charge the income to tax, but there is no legislation to give any deduction for the expenses. See, all perfectly simple.

Apologies that we had to [***] on your honey nut cornflakes.

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By ShawnWong
19th Jan 2017 17:07

Thank you for all above comments!

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