Selling vehicle

[beaches]

Hi hope someone out there may be able to help.... considering closing up my business as a sole trader, however, bought a vehicle last feb that i run through the company and just wondering if i do decide to end the business how do i go about transferring the vehicle to me personally and do i have to pay back the vat that i claimed on it at the time -

is it just a case of changing the bank from which the direct debit comes from - or is there more involved

any advice greatly appreciated

 

[mathepac]

If the vehicle is on finance (HP or whatever) you will need the agreement of the bank (as they own the vehicle) before disposing of a business asset.

 

[beaches]

ok, but what do i do about the vat i have already claimed back on it - do i have to pay that back to revenue????

 

[Graham_07]

The transfer to you is a self supply out of the business. Revenue would be due the VAT on the value of the vehicle at time of its transfer to you. You cannot claim all the VAT on something then transfer it to you rown use without paying what is due back. Depending on whether it is a loan, HP or lease the VAT you have claimed so far may be all or only part of the VAT on the vehicle. The amount due back therefore may be all that relating to the value on exiting the business or only part.

 

[FewEuro]

A quick question regarding the VAT owed on transfer. How is this amount determined. is it the open market selling value at the time of transfer from business to personal ownership?

 

[Graham_07]

A quick question regarding the VAT owed on transfer. How is this amount determined. is it the open market selling value at the time of transfer from business to personal ownership?

Arms length value, normally that which could be expected to be obtained on open market. i.e. you cannot use an artificially lowered or preferential amount just because you are connected with the business.