company A took out HP agreements on several assets and had got approx half way through reapyemtn period when they transferred the assets to company B
Company A is still paying the HP repayments - can they still claim the interest charges in their accounts?
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Hmm...
Have the HP agreements been transferred across to company B with permission being sort by the HP company?
Logic says ...
that as it stands there could be no claim by company A as the interest is not incurred for the purposes of 'their' trade (as it doesn't own or use the assets in its trade). If, however, it invoiced company B for the facility it is providing then everything should be OK in that the interest cost would then relate to an element of its trade.
A bit puzzled
I am a bit puzzled as to how company A has managed to transfer the assets to company B whilst they were subject to a hire purchase agreement.
Do not the assets continue to be owned by the hire purchase company until the final payment has been made under the HP agreement?
David