transferring ownership of items to the business

[Batfink]

I have a load of car parts that I want to use on one of my business's track cars. They were bought by me privately. Can I sell them to my business or is this decidedly dodgy. I have original reciepts so can prove value so i'm not trying to take the piss totally by making up a figure, I just want to know if its a legitimate thing I can do or will mr taxman have a fit.

[Mx_Stu]

If the value of the items is still the same as the price you paid for them, I can't see the taxman having a problem with it.

It would effectively be the same price if the company undertook an arms length transaction for the items and as such no one is gaining from the deal.

[Batfink]

well to be honest the items are not new so I wouldnt be asking for the original price, but a fair market price

[Eric Mc]

There is no problem with "introducing" items previously bought by you personally into the business. As has been said, if they are brought in at cost or written down value (if that is more appropriate) there are no issues. Problems arise if they were brought in at inflated values.


Is your business a limited company or a sole-tradership?

[Batfink]

Hi Eric
my business is a partnership. Does that make a difference at all?

[Eric Mc]

In some ways that makes it simpler. Assets introduced into the business by one of the partners will just be treateed as Capital Introduced on his Partner's Capital Account.