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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9868
Experience:  I have been practising for 30 years.
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With the production of the final Final accounts (Awaiting

Resolved Question:

With the production of the final Final accounts (Awaiting signature) has come a realisation that a figure referred to in the Balance sheet as Share Premium account @ £49,992 was in fact the current value of the premises that We gave to our then new Ltd Company in 1981. - We were charged approx £1500 Tax at the time for the privilege but were told by our Accountant (Robson Rhodes, Taunton, Som. - not to worry as it would all sort itself out in time !!
WE now believe (But need confirmation) that this figure (or part thereof) was always available to us and could have been taken over the intervening years as a Dividend (Tax Free) income As the business always struggled to make a profit and we generally had to live like paupers - can we obtain redress???
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Do you mean can you claim against the accountants for negligent advice?

Customer: replied 1 year ago.
I guess the short answer is "Yes" can we make a claim and how?.
Expert:  F E Smith replied 1 year ago.

Unfortunately, the Limitation Act 1980 is not in your favour. There is a six-year limitation period for breach of contract claims. That period does run from the date of the contract or the date that you have knowledge of the breach (now) but it is subject to a long stop date of 15 years.

I’m afraid that if the accountant raised the defence of Statutory Limitation after 35 years, that defence would succeed. They are unlikely to have any records after 35 years and they could claim that by allowing this to go ahead after that period of time has severely prejudiced their position.

Even before the Limitation Act there has always been the equitable legal maxim, “equity will not suffer delay”.

Unfortunately, I cannot see a claim succeeding therefore.

I am glad to have helped.

Best wishes.

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