Is a license for an immigration application allowable for CT purposes

Is a license for an immigration application...

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A international company wants to get an immigration license from the home office and they have appointed a lawyer to help them

Are the legal fees allowable for CT purposes ?

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By johngroganjga
08th Jul 2013 13:56

Why do you say that the company is "international".  Is it a UK company or a foreign company?  What is the connection between the company and the individual for whom leave to remain is being sought?

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By sash100
08th Jul 2013 22:31

UK company

They are a UK company but parent is US

The UK company need to get a license from the homes ofice to apply for work permits for its employees who will come from the US and India

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By johngroganjga
08th Jul 2013 22:36

Well like all expenses it has to pass the wholly and exclusively test to be allowable for tax purposes. You certainly have at least an arguable case.

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By Steve Kesby
09th Jul 2013 10:02

How long...

... does the licence last?

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Euan's picture
By Euan MacLennan
09th Jul 2013 10:26

4 years

... for a licence to sponsor migrant workers, according to the last FAQ.

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By Steve Kesby
09th Jul 2013 10:39

In that case

The licence would seem to be an intangible asset, to which the corporate intangibles regime would apply. the licence would be amortised over the four year period and the amortisation would be eligible for CT relief.

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Replying to Paul Scholes:
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By sash100
09th Jul 2013 15:36

Probably not intangible

Steve Kesby wrote:

The licence would seem to be an intangible asset, to which the corporate intangibles regime would apply. the licence would be amortised over the four year period and the amortisation would be eligible for CT relief.

These are legal fees in relating to the license and do not think this would be construed as an intangible Asset

However I know legal fees in relation to any capital items are disallowable

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