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legal fees in purchasing a lease

  • Fellow PM.Dip
  • 19 posts
  • # 77107

Hi,

I have a client who purchased a lease for his business. I have put the lease as a fixed asset but can I also capitalise the legal fees for this purchase? 

  • Member
  • Practice Licence
  • 9 posts
  • # 77436

Hi Macclesfield.


I believe that the legal fees incurred for a new lease are not tax allowable and should be capitalised and depreciated over the term of the lease.


Legal fees incurred on the renewal of an existing lease are tax allowable and should be posted to the profit & loss'     

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