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Legal expenses were wholly and exclusively for the purposes of a partnership’s trade

By Mark McLaughlin, March 2022

Expenses incurred defending one of the partners of the partnership against a criminal charge was incurred wholly and exclusively for the business of the partnership.

The appellants (parents and adult son) were partners in a scrap metal business. A police operation was conducted, which involved undercover police attempting to sell (and in some cases selling) property which the police implied was stolen property but which in fact was not stolen, as it was the property of the police.

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