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TaxRobin
TaxRobin, Tax Consultant
Category: Tax
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Experience:  International tax
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Are solicitors fees and stamp duty in connection with lease

Customer Question

are solicitors fees and stamp duty in connection with lease renewal allowable expenses against income tax
Submitted: 2 years ago.
Category: Tax
Expert:  TaxRobin replied 2 years ago.
Hello,Stamp duty land tax payable on a lease renewal forms part of the incidental costs of the acquisition of the new lease and, as the lease is a capital asset, is part of the costs of acquisition falling within section 38 TCGA 1992 and are not an expense for the year incurred against rental income.The solicitor fee can be seen as incidental and would be allowed in the year incurred."Professional fees incurred on the renewal of a short lease with the owner’s consent are capital but are likely to be small; in which event you may allow them on de minimis grounds."http://www.hmrc.gov.uk/manuals/pimmanual/pim2205.htm

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