Car benefits - capital contributions

Car benefits - capital contributions

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My company client is about to buy a new vehicle for £80k, but due to the directors/shareholders agreement it is only allowed to pay £40k of the purchase price. The director is to pay the balance.

The capital contribution route is obviously not favourable as this only allows for a maximum contribution of £5k.

How best do I go about structuring this transaction?

Company purchases the car and sells half to the director?

Director purchases the car and sells half to the company?

They both pay exactly half. Who then owns the car? Does 'half a car' fall within the car benefit regime?

I'm a bit stuck on this. All help greatly appreciated.
mark osborne

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