One of my clients works from home; part of the grounds are given over to large outhouses for the sakekeeping of his stock in trade, LED lighting. There is one driveway to my client's PPR and the outhouses and he needs to keep the driveway clear of blockages for easy access, in and out, of the stock.
He has a neighbour and a dispute has arisen; the neighbour claims he has the right of access his property using my client's driveway. My client disputes this and the matter has been referred to solicitors by both parties and sizeable legal bills have accrued. I am attempting to decide the extent to which a) the legal fees incurred by my client may be treated as an allowable business expense, or a percentage thereof (do they meet the wholly and exclusively test?) and b) the extent to which the VAT on the fees, or a percentage thereof, may be reclaimed.