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General rules

This guidance note covers some common items of expenditure which may be incurred by solicitors or barristers and whether a deduction will be allowable in computing their taxable profits. There are no specific statutory rules for solicitors or barristers, so that the normal rules and principles for calculating taxable trading or professional profits and losses apply. The two fundamental principles that determine whether a deduction is allowable are therefore:

1. •

   capital expenditure is not an allowable deduction (ITTOIA 2005, s 33). See the Capital vs revenue expenditure guidance note

2. •

   expenditure that is not incurred wholly and exclusively for the purpose of the profession is disallowable (ITTOIA 2005, s 34). See the Wholly and exclusively guidance note

For a list of how common expenses are dealt with see the A–Z of common adjustments to trading profits guidance note. See also Simon’s Taxes Division B2.4

The following are some professional costs which solicitors, advocates and barristers may incur to enable them to fulfil their professional