Hi
Client has had a will drawn up which covers his personal assets as well as that of his Ltd company.
I'm a bit dubious that the work for this isn't totally 100% business related but the client's solicitor has informed him this is tax allowable. Can anyone confirm if this is the right treatment please?
Cheers in advance.
Replies (5)
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No, personal assets are just that, personal, and as far as the company is concerned, company assets are company assets and will remain with the company on the death of the director / shareholder. Presumably the will states what will happen to the ckient's shares in the company but again, this is not a legitimate business expense.
Did the client come to you on advice on drawing up a will? No, so equally he should not be taking tax advice from a solicitor.
Sure it is
Sure it's tax deductible. So long as the payment of the individual's personal liability is taxed as a benefit in kind.
Perhaps you should ask the solicitor on what legal basis s/he believes the expense is tax deductible without incurring a BIK?