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Can you sell a personal asset to your company?

Can you sell a personal asset to your company at a profit without any tax liability?

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First question: Can you sell a personal asset to your own company at market value?

Second question: If you originally bought the asset at less than market value or were given it and therefore make a personal profit are there any tax liabilities personally or for the company?

I would have thought the answers were "Yes" and "No" provided that you genuinely transfer the asset to the company at a proveable market value, however I don't pretend to know all the tax legislation so can anyone definitely confirm my understanding or not as the case may be. Thank you all.

 

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By David Ex
19th Oct 2021 12:12

I’ll go with “yes” and “it depends on all kinds of information that you haven’t provided”.

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DougScott
By Dougscott
19th Oct 2021 12:30

Yes I see your point. The particular asset we have in mind is a zero-emission car so no potential CGT for the transferor and obviously the company will have to apply BIK etc. Only 18% WDA would be claimed by the company.

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RLI
By lionofludesch
19th Oct 2021 13:31

Who's using this car ?

I'm guessing the fella who sold it but worth checking.

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Replying to lionofludesch:
DougScott
By Dougscott
19th Oct 2021 16:09

Yes, who is the company's sole director and owner.

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Replying to Dougscott:
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By Hugo Fair
19th Oct 2021 17:28

You said "If you originally bought the asset at less than market value or were given it and therefore make a personal profit are there any tax liabilities personally?"

So are we to take it that the individual originally gained ownership via a gift?
If so, the source of (and reason for) the gift may have a bearing on whether there is any tax liability on disposal.

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By More unearned luck
19th Oct 2021 18:21

Q2: Not enough data provided to answer the question. What does the director do for a living? Is he self-employed claiming CA on the car? Is he in the motor trade? Why did he buy the car (if bought)? Could it be a venture in the nature of a trade?

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