Case: legal costs of directors in Praesto

The case of Praesto has come back to the courts, and the Court of Appeal has overturned the Upper Tribunal and reinstated the company’s input tax claim.

This involved a claim on invoices addressed, only, to a company director for legal services in defending a claim in which the director was the litigant, but it was known the company’s assets were at risk, owing to having made profits from a trade which, it was alleged, the director was bound not to carry out under restrictive covenants.