hire purchase transfer to family member

monkeypuzzle47 Registered Posts: 134 Dedicated contributor 🦉
Hello fellow members :) I wonder if anyone can help me please.

I have a partnership client (2 partners couple). They purchased a vehicle on hire purchase in 2015 and I have been reducing the liability each year in the usual way on the balance sheet and treating the interest. When I discovered that the last 2 instalments for 1718 had not cleared the business account they informed me that they had transferred the balance of the agreement to a family members name so their credit rating is improved (they want to apply for a mortgage). The finance is now in a family members name. It is unclear if they are refunding this family member or whether the family member has agreed to pay the finance for them at this stage. Im waiting on a reply but i suspect they are giving them back the money. Thoughts anyone? and how should I treat this now in the accounts and for capital allowance purpose's? The vehicle is still owned by the partners.
Thanking you kindly in advance.
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