Capital allowances

[Avinesh]

I am considering incorporating my commercial investment business in the near future. Would I be able to ‘sell' to the new company some of my personal equipment that I never originally used in my business as 'Plant & machinery'(2nd Hand PC’s, laptops and mobile phones) as the company will make use of them. I understand that if these are used personally by its employees, there will not be a benefit in kind charged?

What value will these be purchased by the company, im thinking it should be market or replacement value , and would I be able to add the value to my directors loan account if no monies were actually received.

Thanks

[deanshepherd]

You can indeed 'sell' equipment to the company by way of crediting your directors loan account. Open market value should be used in each case.

In most cases the provision of computers and mobile phones to employees are both non-taxable.


Dean Shepherd
dean.shepherd@mmi-online.co.uk
MMI Accountancy
www.mmi-online.co.uk

[Avinesh]

Mnay Thanks