Legal costs and fines not deductible – insufficiently connected with trade.
England and Wales
Cited – Mallalieu v Drummond HL 27-Jul-1983
The taxpayer was a barrister. To comply with Bar guidance on court dress, she wore, in court and in and to and from chambers black dresses, suits and shoes and white blouses. The clothing were perfectly ordinary articles suitable for everyday wear. . .
Appeal From – David McKnight (Inspector of Taxes) v Sheppard CA 7-May-1997
Legal expenses incurred by a professional in defending disciplinary proceedings are deductible from taxable profits. . .
At first instance – McKnight (Inspector of Taxes) v Sheppard HL 18-Jun-1999
The taxpayer sought to set off against tax some pounds 200,000 spent defending professional disciplinary proceedings. The House was asked whether this was ‘money wholly and exclusively laid out or expended for the purposes of the trade.’
Held: . .
Lists of cited by and citing cases may be incomplete.
Updated: 04 June 2022; Ref: scu.83557