My client incurred legal fees trying get out of her lease on shop. The business was making a loss and she wanted out.
Thanks
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I would say that the fees are capital
And even if you were to successfully argue they were revenue - termination of a lease wholly and exclusively for the purposes of a loss-making business??
Non-allowable by definition
The business is ceasing and cancelling the lease is part of that. It therefore cannot be an expense of the business as it not related to the trade itself.