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
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
3
Q
Legal and professional fees relating to capital expenditure are…
A
Generally disallowable
4
Q
Examples of legal and professional fees relating to capital expenditure
A
e.g fees associated with acquiring new fixed assets
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)