Andrew Goldstone and Katherine Forster (Mishcon de Reya) review the latest developments in the private client arena.
Vaines: deductibility of litigation settlement against share of partnership profits
In Vaines v HMRC [2016] UKUT 0002 (TCC) (reported in Tax Journal 5 February 2016) Peter Vaines was a partner in Squire Sanders & Dempsey LLP (SSD). He was previously a partner at another law firm Haarmann Hemmelrath (HH) which had ceased trading owing substantial sums to Bayerische Landesbank. He believed that the risk of challenging the bank through the German courts was too high and that if he failed he would be made bankrupt and lose his partnership at SSD. He therefore agreed to make a payment to the bank in order to release him from all claims and possible bankruptcy. He claimed a deduction of that payment against his share...
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Andrew Goldstone and Katherine Forster (Mishcon de Reya) review the latest developments in the private client arena.
Vaines: deductibility of litigation settlement against share of partnership profits
In Vaines v HMRC [2016] UKUT 0002 (TCC) (reported in Tax Journal 5 February 2016) Peter Vaines was a partner in Squire Sanders & Dempsey LLP (SSD). He was previously a partner at another law firm Haarmann Hemmelrath (HH) which had ceased trading owing substantial sums to Bayerische Landesbank. He believed that the risk of challenging the bank through the German courts was too high and that if he failed he would be made bankrupt and lose his partnership at SSD. He therefore agreed to make a payment to the bank in order to release him from all claims and possible bankruptcy. He claimed a deduction of that payment against his share...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
