Can I declare the costs for a solicitor in the tax return?
Legal fees incurred in connection with earning income can be claimed as income-related expenses in the tax return.
Two examples:
- If, for example, an employee takes legal action against their dismissal, the legal fees are considered income-related expenses for income from employment.
- If the owner of a rented property takes legal action against a tenant for not leaving the property in proper condition, these costs can be deducted as income-related expenses for income from renting and leasing.
There are no income-related expenses if the costs for the legal dispute or lawyer are reimbursed by legal expenses insurance.
