Voluntary strike off and transfer of assets

Voluntary strike off and transfer of assets with HP agreements to connect person

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Can someone confirm whether the following is correct in respect of a sole director looking to voluntarily strike off the Ltd company to go back as a sole trader.

  1. Voluntary strike off is the most straight forward way to unincorporate a business
  2. Assets can be bought by connected persons at market value; or
    • where there are HP loans outstanding on the asset, they can seek to take over any outstanding HP liabilities in order to transfer the asset; or
    • can make a section 266 election to transfer at TWDV

Thank you

Replies (6)

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By rmillaree
23rd Nov 2022 12:25

I would say any sorting of finance is completely independent of disposing of assets - each needs to be looked at individually. So dont think its a choice of those 2 options - ie you might get hp swapped to personal name over and still do s266 claim.

I could be wrong tho - so i am somewhat shooting from the hip here.

Thanks (1)
paddle steamer
By DJKL
23rd Nov 2022 13:46

Of course one does need to consider that the s 266 election prevails for tax not for accounting treatment?

Thanks (1)
RLI
By lionofludesch
23rd Nov 2022 14:18

You need to approach the HP company before any of this happens as you'll need their agreement.

That said, it's likely to be freely given as it increases their chances of getting paid.

Thanks (1)
Replying to lionofludesch:
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By EllaB
24th Nov 2022 13:29

You'd have thought so, but I have a client struggling to get the HP on a car transferred from her Ltd co to her name...

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By I'msorryIhaven'taclue
23rd Nov 2022 14:39

How much is outstanding on the company's BBL?

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Replying to I'msorryIhaven'taclue:
paddle steamer
By DJKL
23rd Nov 2022 15:00

You cynic.

Thanks (1)