Expert Witness Journal Issue 65 February 2026 - Flipbook - Page 15
Less than 5% of companies now require a statutory
audit and therefore the level of independent
scrutiny applied to published accounts is limited. We
expect to continue identifying published 昀椀nancial
accounts with errors in the 昀椀gures which result in a
misrepresentation of the 昀椀nancial position.
Tax issues in settlements of
昀椀nancial disputes
In our experience, there is often insu昀케cient
consideration of the impact on tax on 昀椀nancial
settlements. The maximum tax rate on dividends is
39.35% compared to a tax rate on capital gains of 24%
(ignoring Business Asset Disposal Relief and annual
exemptions). Structuring a lump sum payment
in a shareholder or matrimonial matter using a
Company Purchase of Own Shares could make a
signi昀椀cant di昀昀erence to the after-tax sum received.
In any event, clients need to appreciate the tax costs
of capital extraction which can otherwise mean the
cost of a proposed settlement is substantially more
than anticipated when the deal is being struck.
The role of experts
Our 昀椀nal prediction is that the role of experts
will remain key in 昀椀nancial disputes. Whilst there
may be a role for AI and technology in aspects of
an investigation, the experienced expert opinion
cannot be replaced by automation.
In some corporate matters it may be tax advantageous
to restructure a group or shareholdings. To optimise
the tax outcome, it may be advisable to obtain tax
clearances from HMRC. Such clearances can take
several weeks so early consultation with tax experts
is recommended.
In disputes generally, such as partnerships,
shareholder and employment disputes, there can
be opportunities to mitigate the tax costs of a
settlement and so 昀椀nd a resolution that is acceptable
to the parties.
Unfortunately, our experience is that tax is often
considered very late in a negotiation. Tax is rarely
straightforward and tax input at an early stage of
negotiations is advisable.
Ms Fiona Hotston Moore
Forensic Accountant, Accredited Expert Witness &
Business Valuer, Chartered Accountant & Tax Adviser
Estimating the likely quantum of a
business loss claim
BSc (Hons), CTA, FCA, MAE, ACFS
Fiona is a founder of FHM Forensic Accounting. Fiona specialises in
As forensic accountants we recommend obtaining
an independent view on the available published
accounts early on in a dispute. Published accounts
often contain limited information on the trading
performance of a company. A 昀椀nancial expert can
advise on the key further information required to
give a preliminary view on a claim. An independent
view may help the parties reach a settlement early in
the dispute and mitigating legal fees and stress on
the parties.
commercial disputes, business valuations, tax disputes and professional negligence matters
including giving evidence in the High Court, Family Court, Arbitration and Tax Tribunal.
She has been instructed as an Expert in approximately 450 cases in her career to date.
Fiona is also often instructed to provide expert opinion on a range of matters including
shareholder disputes, agency disputes and insurance claims, tax disputes (including EBTs, film
schemes, entrepreneurs’ relief and Generally Accepted Accounting Practice), officer and
employee fraud, auditor and tax adviser professional negligence claims.
Fiona specialises in share and business valuation cases with particular experience in the
Family Court. She also has considerable experience in commercial disputes, tax disputes and
professional negligence matters.
Fiona has over 25 years’ experience providing strategic, accounting, tax and corporate finance
advice in a variety of sectors. Fiona’s clients have included successful entrepreneurs, start-ups,
international groups and household names
Errors in published accounts
The practical experience that Fiona has as a corporate finance and practicing tax professional
perfectly complements her experience as an expert in commercial disputes in Court
Surprisingly often, we come across errors in the
accounts on Companies House when preparing
valuation and 昀椀nancial reports. These can be simple
arithmetic errors or more technical ones such the
incorrect categorisation of a share premium as a
liability, the omission of a deferred tax liability on
a property revaluation, a material overstatement of
an asset such as stock. These errors can substantially
change our expert view on the company valuation
or 昀椀nancial settlement due in a dispute.
EXPERT WITNESS JOURNAL
proceedings - and vice versa.
Areas of expertise:
Auditor professional negligence
Share valuation
Commercial disputes
Fraud
Employee fraud
Tax professional negligence
Business valuation
Matrimonial
Financial investigations
Contact
Mobile: 07770 642491
Email: fiona@fhmforensic.co.uk - Website: www.fhmforensic.co.uk
Area of Work: Nationwide and International
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FEBRUARY 2026
