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Hi there,
Can you please tell me why legal fees incurred on the lease of a new warehouse would not be allowable expense in computing Case I/II profits? The finance lease payments are allowable in full so why not the expenses?
Thanks
Eliza
First point here is that the terms Case1 and Case 11 have not been used for MANY years so I’m a little concerned as to what sources, other than the OT Study Notes, that you are using for your studies?
As regards the specific query – look at your study notes where for trading income purposes CAPITAL expenditure is NOT an allowable expense with the exception for legal expenses incurred on the RENEWAL of a SHORT lease and your example refers to a NEW lease acquisition
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