Disbursement
A disbursement is a form of payment from a public or dedicated fund, or a payment sought from a client to pass on to a third party.
In the UK, solicitors generally refer to disbursements as payments which they have made or will make to third parties in connection with the matter they are dealing with on behalf of the client.[1] Section 67 of the Solicitors Act 1974 refers to disbursements as "costs payable in discharge of a liability properly incurred by [the solicitor] on behalf of the party to be charged with the bill".[2] These may include court fees, counsel's fees, fees for medical or other expert reports or search fees in a property transaction.
Disbursements paid by an undertaker on behalf of a bereaved family generally include cemetery or crematorium costs, costs for religious worship and any news paper announcements.[3]
For VAT purposes, disbursements are defined more narrowly.[4]
References
- ^ Law Society, VAT on disbursements, 10 March 2011, accessed 6 November 2016
- ^ Solicitors Act 1974
- ^ Paul McEvoy and Sons Family Funeral Directors, Charges by the Funeral Director, accessed 6 November 2016
- ^ HMRC, VAT: costs or disbursements passed to customers, published 1 July 2014, accessed 6 November 2016
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