Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Purchasing/Selling Capital Assets prior to dissolving a company

LynnLynn New MemberRegistered Posts: 5

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?



  • jamesm96jamesm96 Experienced Mentor 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.
  • groundygroundy Trusted Regular 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.
Sign In or Register to comment.