Purchasing/Selling Capital Assets prior to dissolving a company

Lynn
Lynn Registered Posts: 5 Regular contributor ⭐ ? ⭐
Hi

Could I have some thoughts on this please:

Director of a company (EOY accounts 31 Mar) buys a company car for £30K on the 29 Mar. In the new FY (1 Apr) decides to dissolve the company and no longer trades through this company (but trades through another), therefore, not using the car for any period of company business. Director then decides to purchase the vehicle at a price of £20K.

Is this allowed?

Lynn

Comments

  • jamesm96
    jamesm96 Registered Posts: 523
    As long as there aren't any creditors who don't get paid then I don't see that there's any issue.
  • groundy
    groundy Registered Posts: 495
    I would say that HMRC would expect to see the car transferred at a true market value. However, as Mike says if there are no outstanding creditors there shouldn't be any problems.
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