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Where Taxpayers and Advisers Meet

Car incident loss

flproperty
Posts:5
Joined:Thu Mar 29, 2012 7:08 pm
Car incident loss

Postby flproperty » Tue Nov 20, 2018 10:20 am

Dear all

I have some rental properties which I manage myself.

I use my car on daily basis for all the property management. On one occasion, I was involved in an accident. Although it was not my fault, it is resulted I had to pay the other side's lawyer £7000 as their fee cost.

My solicitor told me I can claim this against my property rental incomes. So just wondering what is the best way to do this.

I appreciate your helps in advance.

Many thanks.

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Car incident loss

Postby AdamS93 » Tue Nov 20, 2018 11:41 am

The best thing you could do is ask the solicitor under what legislation you can deduct the legal fees from your property income. Ask for a specific reference.

I would consider it very unlikely that it meets the wholly and exclusively test and therefore not deductible from your rental property.

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: Car incident loss

Postby AdamS93 » Tue Nov 20, 2018 11:42 am

rental property income*.


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