Ask an expert: Legal fees in relation to fines

Question

My client’s trading company is a member of a regulatory body which impose statutory trading conditions under which my clients are contractually bound. Due to perceived gross misconduct my client has been charged a penalty for breaching regulations and as the case is likely to be generally reported this could be detrimental to the business and the client’s reputation. Legal fees have been incurred in defending the position. Can you let me know whether a corporation tax deduction can be claimed for the legal fees and assuming the case is lost the fine and what points will be considered when making a claim. 

Answer

It goes without saying that...