Allowable legal costs?

Allowable legal costs?

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A client, a builder, bought a new van to be wholly and exclusively for business. He bought it in good faith, then found it to be stolen. He has paid £2,000 in legal fees trying to get title. He lost. Are the fees allowable? And what about the purchase price of the van?

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By George Attazder
18th Dec 2012 10:47

The issue...

... isn't that this was a stolen van.  The issue is that the expenses incurred are capital in nature, but the company doesn't own any plant and machinery as a result of incurring the capital expenditure.

The expenditure is disallowable as capital, but capital allowances aren't available.

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