Motor bike subject to HP on incorporation

Motor bike subject to HP on incorporation

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former sole trader wishes to transfer his motor bike to his company but the bike is subject to HP agreement in his own name
- does this effectively prevent the asset going across other than by client settling HP balance?

nick farrow

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By User deleted
28th Apr 2005 01:23

Don't think it can be done easily
I don't think that it is legally possible to sell an asset that is on HP without first settling the outstanding HP.

Alternatively try and get HP transferred into name of new owner, which I don't expect is easy.

If the motorcycle became a company asset there'd be a BIK wouldn't there ?

Isn't this best avoided by keeping motor cycle as a personally owned asset and instead claim a mileage allowance for business use ?

I think the mileage rate for a motorcycle is 24p.

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By nick farrow
28th Apr 2005 09:28

many thanks Mark & Chancer

I believe the 20% bik is reduced for the business proportion

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