We have a client (Mr A) who has purchased a limited company (ABC Ltd - aquired all of the shares of the company) for £100k. As part of the share purchase agreement, they had to pay both the solicitors fees and also the marketing/sale fee. These have subsequently been paid out of the ABC Ltd bank account. My instinct tells me that these are not allowable in the company as the share purchase was that of Mr A and as such, this is a personal expense he would suffer. Therefore, is this as simple as being a DLA transaction and can not be put in the accounts and added back for corporation tax purposes? I suppose I do not want to disallow something that could be allowable if I am looking at this incorrectly.
I have tried to find guidance on this just to see if I am correct but I am struggling so any assistance would be grately appreciated.