I wonder if anyone can advise on whether the Clamants costs (or partial costs) in the scenario below, could be allowed as expenses for tax purposes, given that the 2 defendents where the Holding Company and the Director personally?
I have been given a document from a new client whereby, a shareholder of a small trading Ltd Co, sold their shares to the Holding Company, and the Director of the Holding Company stood as Guarantor, whereby in the terms, the Director would become liable to the seller, should the buyer (the Holding Company) default under the terms of the Acquisition Agreement.
It dragged on, and the funds where not paid across in a timely manner and this went to the County Court, the defendents had to pay a substantial amount for Claimants Costs. The 2 defendents being the Holding Company and the Director (with the Director acting as Guarantor).
Many thanks in advance.