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Sale of Company Assets to self

The depreciated value of mobile and laptop of my company is £603.99. I want to sale this to myself.

Is it allowed?

What entries would come into play?

As long as the company is selling the asset at a reasonable market value (which may or may not be the same as the net book value) then selling it to a director is no different from selling it to anyone else, except that you could use the director’s loan account for payment if you’re not paying the company directly at the time of sale. If the company is selling the asset to a director below market value then there may be tax implications and you should check with your accountant first.

And if the company is VAT registered then it must charge you VAT on the sale exactly as it would when selling something to an outsider.

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Since it is used Laptop / Mobile, there is no way to ascertain the correct price. Hence, I am booking it at depreciated value. This is should have no tax impact. Is that a correct assumption?

Co is registered for flat rate VAT. Do second hand goods have VAT?

These questions are beyond my competence, check with your accountant. My own understanding regarding the VAT is that you have to pay the full VAT outside the flat rate scheme if the company had originally claimed back the purchase VAT as a capital purchase over £2000, otherwise you treat it as part of your flat rate turnover as normal.

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You also have to consider whether capital allowances have been claimed on the laptop and if so, once sold, work out the balancing charge and associated tax that goes with it.

As Ian says, speak to an accountant.

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Yes, it is possible to work out the market price. Look on ebay for the same model and completed sale values for items of a similar condition.

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