Can a Solicitor Claim CPD Costs as a Tax Deductible Expense in 2025/26?

Is Solicitor CPD a Tax Deductible Expense?

Yes, in most cases a solicitor can claim CPD costs as a tax deductible expense. The key question is whether the training is incurred wholly and exclusively for the purposes of the solicitor's trade or employment. For solicitors regulated by the SRA, continuing competence is a mandatory requirement under the SRA's Continuing Competence framework. This makes most CPD costs a straightforward business expense.

However, the tax treatment depends on your employment status. An employed solicitor, an equity partner, a fixed-share partner, and a locum solicitor each face slightly different rules. We set out the distinctions below.

The HMRC Test for Training Costs

HMRC allows a deduction for training that maintains or improves existing knowledge and skills relevant to the solicitor's current role. This is the same test that applies to other professionals such as accountants and barristers.

Training that qualifies typically includes:

• CPD courses accredited by the SRA or Law Society
• Conferences and seminars on legal updates
• Online webinars covering changes in legislation or procedure
• Professional qualifications that enhance existing expertise (e.g. a higher rights of audience qualification)
• Subscriptions to legal databases and journals
• Travel and accommodation costs directly related to attending CPD events

Training that does not qualify includes:

• Courses that enable a solicitor to start a new trade or profession (e.g. retraining as a barrister)
• General life skills courses (e.g. public speaking, time management) unless directly linked to the solicitor's current practice
• Costs of a qualification that is not relevant to the solicitor's current role (e.g. a conveyancing solicitor taking a corporate finance qualification with no intention of using it)

Employed Solicitors and CPD Costs

For an employed solicitor (including a salaried partner treated as an employee for tax purposes under the Salaried Member Rules), CPD costs are deductible against employment income under the wholly, exclusively, and necessarily test in s.336 ITEPA 2003. This is a stricter test than the trade test for self-employed solicitors.

In practice, HMRC accepts that CPD costs incurred to meet the SRA's continuing competence requirement are necessarily incurred in the performance of the solicitor's duties. However, the employer must not reimburse the cost. If the employer pays for the CPD directly, the solicitor cannot claim a separate deduction because the expense has already been met.

If the solicitor pays for the CPD themselves and is not reimbursed, they can claim a deduction on their tax return via the employment expenses section. The solicitor must keep receipts and a record of the training's relevance to their role.

Example: Employed Solicitor

Sarah is an employed solicitor at a high street firm in Manchester. She attends a one-day conference on residential conveyancing updates costing £350 including VAT. Her employer does not reimburse her. Sarah can claim £350 as a deduction against her employment income on her self-assessment tax return. She saves tax at her marginal rate (20% basic rate or 40% higher rate).

Equity Partners and Fixed-Share Partners

Equity partners and fixed-share partners in a law firm partnership or LLP are treated as self-employed for tax purposes. Their CPD costs are deductible under the wholly and exclusively test for trading expenses in s.34 ITTOIA 2005. This is a more generous test than the employment test.

Partners can deduct CPD costs that are incurred for the benefit of the partnership's trade. The partnership typically pays for CPD centrally and deducts the cost before allocating profits. If a partner pays personally, they can claim a deduction on their self-assessment return as a partnership expense (if the partnership agreement allows) or as a personal trading expense.

One common question is whether a partner can claim CPD costs that also benefit their personal development. HMRC's view is that if the primary purpose is to maintain or improve the partner's competence for the partnership's trade, the cost is deductible even if there is some incidental personal benefit. This is the duality of purpose test. For example, a partner attending a leadership course that improves their ability to manage the firm's team is likely deductible. A partner attending a course on personal financial planning for their own investments is not.

Example: Equity Partner

James is an equity partner in a five-partner commercial litigation firm. He pays £1,200 for a two-day CPD course on the latest developments in professional negligence litigation. The partnership does not reimburse him. James can deduct the £1,200 against his share of the partnership profits. He saves tax at his marginal rate (40% or 45%).

Locum Solicitors and CPD Costs

Locum solicitors are typically self-employed, either as sole traders or through a personal service company (PSC). Their CPD costs are deductible as trading expenses under the same wholly and exclusively test that applies to partners.

Locums must be careful about the IR35 rules. If a locum works through a PSC and the engagement is caught by IR35, the locum is treated as an employee for tax purposes. In that case, the employment test applies (wholly, exclusively, and necessarily), which is stricter. The locum's PSC can still claim the cost as a deductible expense, but the locum personally cannot claim a separate deduction.

Locums should also consider whether their CPD costs are incurred for the trade of being a locum solicitor, rather than for a specific assignment. HMRC accepts that maintaining competence is a general trade expense for a locum, provided the training is relevant to the type of work the locum undertakes.

SRA Continuing Competence and the Tax Position

The SRA's Continuing Competence framework requires all solicitors to maintain their competence throughout their career. There is no minimum number of CPD hours, but solicitors must reflect on their practice and identify learning needs. This makes CPD a regulatory necessity, which strengthens the case for tax deductibility.

HMRC has confirmed in its internal manuals that training required by a regulatory body is normally deductible. The key is that the training must be relevant to the solicitor's current role. A solicitor who switches practice areas (e.g. from conveyancing to family law) can claim the cost of retraining in the new area, because it maintains competence in their new role. A solicitor who takes a qualification in a completely unrelated field (e.g. a law degree in a different jurisdiction) may face challenge.

What About the SRA's Annual Practising Certificate Fee?

The SRA's annual practising certificate fee is a separate cost from CPD. It is also tax deductible as a regulatory expense. The same principles apply: employed solicitors can claim it if not reimbursed; partners and locums can claim it as a trading expense.

For more detail on the SRA's requirements, see our guide on SRA Accounts Rules essentials.

Common Mistakes and Pitfalls

We see several recurring errors when solicitors claim CPD costs:

• Claiming without receipts. HMRC can ask for evidence. Keep invoices, booking confirmations, and attendance certificates.
• Claiming personal development courses. A course on mindfulness or personal finance is not deductible unless directly linked to the solicitor's role.
• Double claiming. If your employer or partnership pays for the CPD, you cannot also claim a personal deduction.
• Claiming on the wrong tax return section. Employed solicitors must use the employment expenses section, not the self-employment section.
• Forgetting travel and subsistence. If you travel to a CPD event, you can claim mileage (45p per mile for the first 10,000 business miles) and reasonable subsistence costs.

How to Claim CPD Costs on Your Tax Return

The process depends on your status:

• Employed solicitor: Complete the employment expenses section of your self-assessment return (SA100, page E2). Enter the total amount of allowable CPD costs under "Fees and subscriptions".
• Partner: Include CPD costs in your partnership accounts as a deductible expense before profit allocation. If you pay personally, claim on your self-assessment as a partnership adjustment.
• Locum solicitor (sole trader): Include CPD costs in your business accounts as a trading expense.
• Locum solicitor (PSC): Include CPD costs in the company accounts as a deductible expense. If IR35 applies, the company can still claim the cost.

For more tailored guidance, see our pages for partners and junior solicitors.

Record Keeping for CPD Costs

HMRC can enquire into a tax return up to 12 months after the filing date (or longer if there is suspicion of error). Keep records for at least 22 months from the end of the tax year. For 2025/26, keep records until at least February 2028.

Records should include:

• Receipts or invoices for CPD courses
• Booking confirmations
• Attendance certificates or CPD logs
• A brief note explaining how the training relates to your current role
• Travel and subsistence receipts if claimed

Final Thoughts

Solicitor CPD costs are generally tax deductible, but the rules differ by employment status. The key is to ensure the training maintains or improves your competence in your current role, and that you keep proper records. If you are unsure whether a specific course qualifies, speak to a legal-sector-specialist accountant.

We recommend reviewing your CPD spending each tax year and claiming all allowable costs. Even small amounts add up over time. For a full review of your tax position, including CPD and other deductible expenses, contact our team.

For further reading, see our guides on professional indemnity tax treatment and COFA fundamentals.