in buying a tenancy, do I have to capitalise the legal fees and vat? Purchase split evenly property, F&F, goodwill. Also, landlords solicitor fees include vat. Again do these (and the vat) have to be capitalised? Allowable for CA?
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Landlord solicitor fees may well be addressed to landlord not you- we often had non recoverable vat re solicitors acting for banks but we were liable to pay their costs.
It's unlikely that you'll be able to reclaim VAT on the landlord's legal fees as the supply is not to you.
However, if the landlord is VAT registered, he may well be able to reclaim the VAT, in which case, he really didn't ought to be reclaiming the VAT from you.
So, it depends. There's not enough information.