Selling my car to my LTD co. ?

[LDN]

Hi,

I have a 2nd car that I am looking to sell; I have a LTD co. with my fiancé and she'd like to keep the car in the family; use it for work trips and the like; what's the situation with regard selling the car to the LTD co.? What is the process?

I was going to simply transfer the money from the LTD co. account into my personal account and then send off the log book; stating the LTD co. as new owner.

Is it / can it be that simple?

[pherlopolus]

why would you want to? it opens a whole can of worms with hmrc.

[Eric Mc]

LDN said:

Hi,

I have a 2nd car that I am looking to sell; I have a LTD co. with my fiancé and she'd like to keep the car in the family; use it for work trips and the like; what's the situation with regard selling the car to the LTD co.? What is the process?

I was going to simply transfer the money from the LTD co. account into my personal account and then send off the log book; stating the LTD co. as new owner.

Is it / can it be that simple?

It will become a company car and anybody who uses it could be exposed to a taxable Benefit in Kind charge.

The company may also incur Class 1A NI liabilities.

[LDN]

Ouch. I wanted to sell it as I feel I don't need it but it would be handy for work stuff and so that is where the idea was born. Seems like it may be a hassle

[Eric Mc]

Talk to your accountant.