Scenario:
Client is a sole trader about to stop making regular supplies. Client has a van, purchased two years ago for use in his business.
Client is a partner in a trading partnership and is basically slowing his sole trade right down in order to take the active role in the partnership.
Client wishes to sell or transfer commercial vehicle to partnership (valid buisness use!).
Both business are VAT reegistered, although sole trade is de-registering.
The sole trade and the partnership do not carry out related activities so I don't think we can make an election to transfer at tax WDV (advise if I'm wroung please)
Question:
Can we transfer or 'sell' the asset to the partnership at the depreciated value in the sole trade accounts or is there a method of valuation that we should be using to comply with any HMRC requirements?
All help appreciated!
