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Post Info TOPIC: Transferring business asset
NA_AA


Guru

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Transferring business asset
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Can a business asset (building) be transferred to a person not connected to the business (partner of business owner)?

If yes, are there any costs / tax implications associated with this?

 

Thanks

 



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Thanks, Nadia.
Cheshire


Master Book-keeper

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Hi Nadia
Not enough info here. What is the business entity? When you say partner - can you confirm what type of partner. Life partner? Just thinking of your post the other day about man getting a divorce and assuming this may be connected.

When you say 'transferred' - are you suggesting its 'gifted' to someone or at full OMV (complete with independent valuation)?

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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
NA_AA


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Joanne,
This is totally unrelated to previous post you are referring to.

It's a Ltd company.
It owns a building which it operates from but now the director is thinking of transferring it to the wife so she can use it for her business and partially rent it out

Hope this helps

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Thanks, Nadia.
Cheshire


Master Book-keeper

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Ah right - just thought I would check.

So the question remains - is it being sold at OMV, with independent valuation, for cash? Or if not that - then on what basis?



__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
NA_AA


Guru

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Market value

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Thanks, Nadia.
Cheshire


Master Book-keeper

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Hi Nadia
There would (presumably) be a CT chargeable gain on the sale for the Limited. You can deduct certain costs eg solicitors fees.

Also dependent on whether or not the wife has the resources in her business to purchase the property it is also worth looking at the legal status/structure of her business before any decisions/transfers are made, assuming she is also your client.

 

 

Edited for typo



-- Edited by Cheshire on Wednesday 14th of September 2016 07:31:28 PM

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
NA_AA


Guru

Status: Offline
Posts: 501
Date:
Permalink Closed

Thanks Joanne
the wife is not a client


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Thanks, Nadia.
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