i have a client who sold his business at the second attempt following an abortive sale in the same tax year......legal fees were incurred on the abortive sale......what, if any, is the tax treatment of these fees?.......
Tony Wilshire
Replies (2)
Please login or register to join the discussion.
I disagree
Fees relating to an abortive proposed sale are not allowable because there is no income or gain to set them against. This is an example of a "tax nothing".
If the fees for the subsequent successful disposal are reduced because some of the ground work is already in place then there is an argument for apportinning some of the abortive fees. But anything specific to the deal that fell through cannot be allowed.