Disallowed Expenditure - Legal and Professional Charges

Question 1

Expenditure on legal and professional fees is…

Answer 1

Allowable if incurred for the purposes of trade

Question 2

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

Answer 2

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

Question 3

Legal and professional fees relating to capital expenditure are…

Answer 3

Generally disallowable

Question 4

Examples of legal and professional fees relating to capital expenditure

Answer 4

e.g fees associated with acquiring new fixed assets

Question 5

Which expenses relating to capital assets are allowable?

Answer 5

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