Please can someone point me in the right direction to find clarification on what types of legal and professional fees are allowable for Corporation Tax.
One expense is for legal fees in relation to a license to assign at the end of a lease.
The other is legal fees in relation to registering a charity as a non profit organisation.
Replies (4)
Please login or register to join the discussion.
Legal fees regarding rights over a lease are probably capital in nature, unless you are trading in properties, so probably not allowable.
Since a charity is not normally subject to corporation tax, the question of deductibility is not in point.
@OLF88
If you want paid advice, you should go to an accountant!
The only legal fees relating to a lease which are allowable, are by concession, renewal of a short lease. Costs of assigning a lease are not allowable.
Who was the charity registered with? Charities Commission? HMRC? I agree there might be grounds to allow it, but it's not a straightforward answer without the full facts.
Business Income Manual
Here is a link to HMRC's Business Income Manual concerning professional fees, http://www.hmrc.gov.uk/manuals/bimmanual/BIM46400.htm