A client has paid a premium of £7.4k to extend a long lease, and incurred professional fees of £4.5k (legal, negotiator etc).
Ross Martin states "[legal fees relating to] Renewals or replacements of long leases (50years or more) are allowed where there is continuity of the old lease, and the renewal is drawn up in similar terms to the old." (https://www.rossmartin.co.uk/land-a-property/248-property-profits-and-losses#overview-and-faqs) which seems to suggest that it can.
HMRC's guidance manuals, however, appear to state that it would only be allowable if the lease was a short lease (https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim2120 and https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim46420)
From speaking to Abbey Tax, they also suggest that the professional costs would not be allowable.
Am I missing something? If anyone can square the circle, that would be appreciated!
EDIT: Nichola Ross Martin has explained my error – the RM guidance only relates to the professional costs incurred by the lessor of the lease
*This questiom has been edited to include additional amends.*