Corporation Tax on Gifted Assets

Corporation Tax on Gifted Assets

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I have a client who personally owns assets, but is gifting them (free of charge) to his privately limited company.

I believe that the double entry for this will be to debit the asset on the balance sheet and credit contribution revenue on the P&L.

However will this contribution P&L give rise to a corporation tax charge?

If so, is there a better way to approach this?

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By WhichTyler
08th Apr 2016 19:11

Yes
He could lend the co the money to buy the assets from him

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Replying to SXGuy:
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By A1HuX
09th Apr 2016 12:34

Good thinking, I could put the assets on the balance sheet of the limited company, and simply post an offset on the balance sheet for a directors loan payable for the sum of the assets total fair market value, thanks

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