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Legal costs on business being invested in

Client has an investment company as share holder, this relates to the legal fees passed on

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Client has an investment company as share holder, the investment company has passed on some legal fees that they incurred and there is a smal legal bill separately that relates to finding the investors.

If my client were acquiring the shares in another company, it would be easy to capitalise along with the investment, however there is no asset acquired for my client, but as far as I can see, they are not allowed as revenue expenditure either, am I correct?

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Hallerud at Easter
16th Jan 2020 17:10

Who found the investors- the company? Did it issue further shares. If it did it is surely a cost for the company, albeit would not expect the company to get any relief for tax re said cost.

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Replying to DJKL:
By vmartin1984
16th Jan 2020 19:36

Yes I believe the company did and issued shares, the investing company then charged on legal costs. I assumed non allowable revenue costs but wanted to double check my understanding

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