Deductibility of legal fees

Deductibility of legal fees

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My client JHL is s firm of solicitors in partnership. They represented TM in a court case - but JHL and TM lost. Nevertheless, TM paid the fees charged by JHL. 

It transpired that JHL had given bad advice to TM. TM then took JHL to court to recover the fees he paid. TM won.

Now, my client must repay the fees he charged.

Is this repayment deductible for tax for JHL, my client solicitor?

The fees JHL charged were reported as income to the partners.

My gut instinct says Yes - they are deductible. However, I would appreciate your thoughts and any useful links.

Thanks.

Replies (3)

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By johngroganjga
18th Sep 2015 15:01

Yes.

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By bernard michael
18th Sep 2015 15:40

Just reverse the original accounting transactions

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By Manchester_man
19th Sep 2015 12:27

This is not legal fees, but a refund which has been directed by the court.

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