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Legal fees on aquisition of business

JodieRJodieR Experienced MentorRegistered Posts: 1,002
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?

Comments

  • T.C.T.C. Experienced Mentor Registered, Tutor Posts: 1,448
    Not sure of the question? Can you elaborate?
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    They don't go on the balance sheet. They go on the P&L and are added back in the tax comp.
  • JodieRJodieR Experienced Mentor Registered Posts: 1,002
    That makes sense! thanks :)
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