Legal fees on aquisition of business

JodieR

Client (Partnership) bought a business last year, and ended up paying £6500 for F&F, £6999 for goodwill, £1 for porperty lease and then £750 to the solicitors for their involvement in the sale.

Am I right in thinking there's no relief for the solicitors fees until they come to see the business? If this it correct, where do they go on the balance sheet? As their own heading? or split between the F&F and goodwill? and if they do end up with F&F in all or in part then I presume you can't claim capital allowances on them?

T.C.

Not sure of the question? Can you elaborate?

deanshepherd

They don't go on the balance sheet. They go on the P&L and are added back in the tax comp.

JodieR

That makes sense! thanks