Legal fees on grant of a lease

Legal fees on grant of a lease

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A client has acquired a commercial property and granted a fifteen year lease.  I do not believe that the legal costs for this are allowable.  However the tenant is not doing well and is likely to leave soon, so client will have more legal fees to grant a further lease to another tenant.  

If i am reading BIM46420 correctly, if the subsequent legal fees are 'small' they will be allowable (despite it being a different tenant).  But what would be considered small?  Rental income is aprox £12k, legal fees £2k, does anyone think that these would be allowable?

Many thanks.

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By Exector
20th Jan 2015 15:39

Lessor not tenant so PIM2205 is more relevant

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