Disallowed Expenditure - Legal and Professional Charges Flashcards

1
Q

Expenditure on legal and professional fees is…

A

Allowable if incurred for the purposes of trade

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2
Q

Examples of expenditure on legal and professional fees incurred for purposes of trade

A
  • legal fees chasing debts
  • charges incurred in defending the title to fixed assets
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3
Q

Legal and professional fees relating to capital expenditure are…

A

Generally disallowable

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4
Q

Examples of legal and professional fees relating to capital expenditure

A

e.g fees associated with acquiring new fixed assets

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5
Q

Which expenses relating to capital assets are allowable?

A
  • fees and other costs of obtaining long term debt finance
  • cost of registering patents
  • expense of renewing short lease (less than 50 years)
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