Legal Fees, allowable?

Legal Fees, allowable?

Didn't find your answer?

My client incurred legal fees trying get out of her lease on  shop.  The business was making a loss and she wanted out. 

Thanks

Replies (2)

Please login or register to join the discussion.

avatar
By User deleted
21st Jan 2014 10:53

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??

Thanks (1)
Stepurhan
By stepurhan
21st Jan 2014 11:04

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.

Thanks (1)