Pre incorp expenses

Pre incorp expenses

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A client has spent circa £10k on professional fee's, legal costs and some revenue expenditure prior to incorporating his company (he wasn't self employed prior to Ltd company set up). If the costs are incurred W,E, N for the business, can these be credited to his DLA and CT deductions available? I believe a lot of the costs will be capital costs, but if some are revenue can CT relief be obtained?

If this is the case, are there any P11D issues?

The other issue is that he is now in year 3, and has only just told me! Could these be introduced into the year 3 accounts, as they are not significant enough to warrant a PY adjustment?

 

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By jvenegas16
25th Aug 2014 10:30

Allowable

The expenses incurred seven years prior to starting a business are allowed as long as they were allowable at the starting date.

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