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Can investment fees have a tax deduction?

As with most taxes, the answer to the question: can investment fees have a tax deduction is not straight forward. The answer to this depends on a number of factors that we’ll bring you through stage by stage.
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Capital allowances

If you’re running your business from your home, there are tax savings to consider. Investing in tools you require for your job, such as computers or forms of machinery, can all qualify for tax relief. These are known as “capital assets”. This basically allows you to lower your bills, which in turns makes your firm more profitable. There is a limit though. The “Annual investment allowance” makes sure that you don’t push things too far.

Cars

Cars are a major expense no matter who you are so saving money on the taxes the government levy on them is a great way of putting a little extra cash in your pocket. Cars are dealt with a little differently. The govrnment tries to encourage you to get a greener car so they link the tax to the car’s emissions. A car that is below the threshold will allow you to claim 100% of the cost per year. If the car’s over the threshold, you can only claim 18%.

Tax deductible expenses

If you’re business is investments, your investment management fees are tax deductible. These expenses are added into the pile with tax preparation fees, safe deposit box fees and other qualifying expenses. Things like subscriptions to professional journals, uniforms and safety equipment qualify as tax deductible. The reason we’re mentioning all of these expenses is that they are lumped together and totalled to work out the tax deduction amount.

Further reading

If you have any other tax questions, why not visit gov.uk? You may also want to check out our guide to tax for self-employed workers.

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