Transferring car out of company

[andrewmarr2000@yahoo]

I have decided that it would be cheaper for me to turn my company car into a private car. I believe that I can gift the car to myself from the company. The consequences of this are that the car can be take out of its pool at market value with and there will be a balancing allowance. I will be taxed on the market value of the car and the company will pay NIC on this amount.

Is there any better way of me achieving a transfer of the company car into my own name?

[funcrusherbill]

I think there was an appeal court decision this week to the effect that where the employee has shared ownership of the car with the company (only 5% in the case), the benefit is NOT taxable at all. I think the Inland Revenue will appeal higher! Sounds like you should just purchase 5% of the car!

[accountant@uktaxshop]

Andrew,

You should go through this with your accountant, but the short answer is you can only take it out of your (presumably ltd) company when you change the vehicle.

Unfortunately cone taken the decision is for the lifetime, you canÂ’t change as and when you chose.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436