Expenses of Company in receivership | AccountingWEB

Expenses of Company in receivership

Our client has paid expenses of a company that he owns (which is now in receivership) through another company which he owns. He is claiming that it's a valid business expense as thecompanies he has paid wouldn't trade with the new company unless the bills were paid. Does anyone know if these amounts can be tax deductible in the new company? The expenses haven't been claimed against tax in the old company as no accounts or corp tax return have been completed for the period.

Many thanks



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ShirleyM |
ShirleyM's picture

This can be common practice

Glennzy |
Glennzy's picture