Car fraud...tax implications
A client purchased a car from a seemingly reputable company via a bank transfer for £9,000. It seems she has been the victim of a scam , although she received an invoice the car and money seems to have disappeared.
She intended to use the car for business (with say 15% private use deduction).
If she never sees her money or car again how if at all should she treat the loss for tax purposes.
1. If we establish the car did exist could we claim £9,000 addition less disposal £0 = £9,000 balancing allowance then deduct private proportion.
2. If the car didn't exist , could we still claim the above treatment given the fact she had an invoice and purchased the "car" in good faith?
3. If not is their a specific deduction for fraud or any other way to get relief.