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Where Taxpayers and Advisers Meet

Company car - transfer to director

Joined:Wed Aug 06, 2008 3:24 pm

Postby saba » Tue Oct 10, 2006 1:49 am

If my company buys a new car, and transfers it to me as a director the next day

1. Does the company get a full balancing allowance?

2. Does it get a writing down allowance?

3. What are the proceeds? Nil or market value?

4. What is my benefit in kind value?

Simon Sweetman
Joined:Wed Aug 06, 2008 3:11 pm

Postby Simon Sweetman » Tue Oct 10, 2006 11:10 pm

I think the correct treatment is simply that the car is transferred at its cost, so the company gets no allowances and the benefit in kind is the full price.

Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Thu Oct 12, 2006 3:31 am

Or the cost is deducted from your loan account with the company. No BIK would arise.

What was the purpose of such a transaction?

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