1. Hello, you can certainly deduct the costs of legal advice from the company's account if the advice given relates to your position vis a vis the company. However, if the advice given strays in to personal advice, not connected to the company, then you will have to allocate that part of the bill to your personal funds. It is only that part of the solicitor's fees which relate to your position as regards ***** ***** which can be deducted from the company's funds. Accordingly, if there is mixed personal and company connected advice, I would suggest you allocate half of the solicitor's bill to the company and half to your personal funds. However, if all the advice relates to severing your connection with the company, then you can deduct all of the bill from the solicitor. That is permissible under deductions for corporation tax.
2. The test is one of "wholly and exclusively". So if the advice given relates wholly and exclusively to the company and its affairs, then the solicitor's bill is deductible from the company. However, if the solicitor's advice strays into your personal situation, then this part is not deductible. I would suggest that if there is mixed personal and corporate advice that you get the solicitor to bill separately for each aspect. One bill for the corporate connected advice and one bill for the personal advice.
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