Post Cessation Expenses | AccountingWEB

Post Cessation Expenses

A solicitor ceased trading 3 years ago but since that time has incurred the following costs:

1.  A number of claims have been made against him where he has had to pay the insurance excesses.  This has amounted to tens of thousands.

Can this be claimed as post-cessation expenses on the basis that this is 'remedying defective work done' and does this have to be claimed in the year the payment is made?

2. The solicitor received significant sums to do with miners claims during the time he traded.  However, the claims for costs by solicitors were judged to be excessive.  This judgement was made after the solicitor ceased trading.

Can this be classified as 'bad debts' and claimed at any time up to 7 years after cessation?

Thanks for any feedback.


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seems OK

pawncob |
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