Tax Relief on Professional fees

Here are the basic rules:

You can claim tax relief on fees or subscriptions for some professional organisations if:

• HMRC has approved them
• being a member of the organisation is relevant to your job

If the organisation has been HMRC approved they can tell you how much tax you can claim back. Please see gov.uk for the list of approved organisations!

You cannot claim tax back on life membership subscriptions or for fees or subscriptions you:

• do not need to do your job
• have not paid yourself
• have paid to professional organisations that are not approved by HMRC

If your organisation is shown on the list you can get tax relief by:

• making a claim by poston a form P87
• entering the amount you can claim in box 19 of the SA102 pageif you need to send us a Self Assessment tax return
• If you're a professional organisation, you can complete form P356to apply to be added to the approved list for fees and subscriptions.

The professional fees you pay, associated with a property transaction, are a tax allowable deduction.

However, it is necessary to consider the reason for which a property is purchased to determine which taxes are reduced by such payments.

For example, if you buy a property with the intention to retain it and generate an income from letting the property, then any legal or other professional charges associated with the management of the property will be an allowable deduction.

Any legal or other professional charges linked to the purchase or sale of a rental property will not be a deduction for income tax purposes but will be an allowable deduction for capital gains tax purposes when the property is sold.

Alternatively, if you buy and sell properties as a building developer, then all legal and professional charges associated with the purchase, development and sale of such properties will be a deduction for income tax or corporation tax.

If you need more information or clarification and advice on any of the above, please don't hesitate to contact Buckler Spencer on 01283 217256 or email: office@bucklerspencer.co.uk