Greetings,
After more than 10 years living in this beautiful country, which I am in love with, the UK, time has come to apply for Naturalization.
A couple of quick questions:
- As a company director, can I deduct the costs of Naturalization fees (£1200 circa) from my corporate tax as expenses?
- Are there tax-related implications gaining dual-citizenship which I should be aware of, being my country of origin an EEA member?
Any help would be highly appreciated. Thanks in advance!
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Replies (3)
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Tax deduction
I have no idea about your second point. However as regards the costs your company would be able to get a tax deduction for it on the basis it was part of your remuneration package as a director.
The issue though is that payment either creates a benefit in kind or else direct salary (if the company pays a bill made out to you for the naturalisation it is taxed in the same way as salary). So you are liable to tax on it instead.
You then have to consider whether the very narrowly drawn rules on employee expenses permit a corresponding deduction against this income. They don't.
I'd suggest that instead you look at tax efficient ways to take an extra £1200 from the company in discussion with your accountant and use that to pay the fees.
Professional Fees
Thanks Anthony,
I was actually investigating whether this could be filed under Professional Fees on the allowable expenses.
No
It is not an allowable business expense.
Your British citizenship has nothing to do with your business.