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Legal fees for abortive sale of property

The first attempt to sell fell through. Are the costs allowable against the final proceeds

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At a very late stage negotiations to sell a property fell through. Legal etc fees had been incurred. 
Subsequently the property was sold to a different buyer. 
Can the legal fees on the abortive exercise be claimed against the eventual profit?

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paddle steamer
16th Apr 2020 12:46

If some of the work that would have been needed on the second sale was incurred within the fees for the abortive sale then possibly in part- where our solicitors have had this we tend to get a lower fee on the subsequent sale because of it, but I would not hold my breath re the quantum of the first fee, it will likely be a small part (title investigations etc but likely not say search outlays unless one sale very close to the other, as they go stale)

It depends upon the transaction, depends if other costs beyond mere solicitor bills were incurred re say reports and they could be reused-if same solicitor for both have a chat with them but other than above I suspect the answer is likely no, no relief possible.

Edit- above assumes a sale for CG purposes not trading income, my answer would vary if they trade in land.

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