Client had a vehicle impounded by the Police for a serious motor offence. It's a sole trader vehicle, recorded as an asset, and was seized whilst returning from a work site. Release fee tax deductible or disallow?
-- Edited by Leger on Tuesday 28th of April 2020 05:41:54 PM
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
If the vehicle was impounded and he was then charged with an offence would this not be different? Surely 'innocent until proven guilty' so maybe deductible
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
In this case the fine is to punish, which it wouldnt if he had tax relief.
Out of interest - how long before he got it back and was it mega expensive? Just being nosey!
Hi Joanne, thanks. Also thanks to Doug and Janet.
It's not a fine, it's a release fee to get the vehicle out of the compound, and is paid to a private operator, not the Police. However, the client had committed an offence for which he was charged so fair point raised by Doug. I genuinely didn't know the answer.
It was £190, £150 release fee plus £20 a day storage charge.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
If the vehicle was impounded and he was then charged with an offence would this not be different? Surely 'innocent until proven guilty' so maybe deductible
Agree perhaps not stictly a 'fine', but a charge/penalty/sanction as a consequence of breaking the law. Dont they only impound when the lawbreaker has failed to pay the fine in the first instance or if eg a vehicle is proved on the spot to be driven without insurance?
If there is a chance of innncence being proven, then the said charge can be overturned, even if needs be by virtue of the courts (and perhaps compo also obtained).
I cannot see how it would be W&E, but there may be a scenario Im missing so happy to learn.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
If the vehicle was impounded and he was then charged with an offence would this not be different? Surely 'innocent until proven guilty' so maybe deductible
Agree perhaps not stictly a 'fine', but a charge/penalty/sanction as a consequence of breaking the law. Dont they only impound when the lawbreaker has failed to pay the fine in the first instance or if eg a vehicle is proved on the spot to be driven without insurance?
If there is a chance of innncence being proven, then the said charge can be overturned, even if needs be by virtue of the courts (and perhaps compo also obtained).
I cannot see how it would be W&E, but there may be a scenario Im missing so happy to learn.
I think that Joanne has blown any thoughts from me that they may have a case to allow the costs completely out of the water, as in that if they were to be proved innocent at a later date then they would be able to overturn the charges.
So objection overruled and disallow!
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Doug
These are only my opinions of how I see things and therefore should not be taken as advice
