transfer of assets

selling vehicles to non-parent company

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Hi all,

 

i have the following scenario whcihc i found quite interesting:

3 electric vehicles were purchased by the parent company and FYA claimed in year one, they were then sold on in the books to the subsidiary company where it was thought that depreciation could be claimed going forward or FYA again in the subsidiary compnay.

is that ok to do?

 

thank you

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RLI
By lionofludesch
14th Jan 2019 14:47

No.

And even if you could, the entities as a group wouldn't benefit as there'd be a balancing charge on the sale price by the parent.

It's arrant nonsense.

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