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