Closing down company soon, need to purchase a new laptop Closing down company soon, need to purchase a new laptop
Posts 1 to 4 of 4
  1. #1

    Still gathering requirements...


    Join Date
    Oct 2006
    Posts
    44

    Lightbulb Closing down company soon, need to purchase a new laptop

    I'm planning on shutting down my company shortly - maybe in the next couple of months. The company currently owns a laptop purchased around four years ago which is on its last legs. Would it be frowned upon purchasing another through the company just before shutting down? I would end up selling it to myself upon shutdown - would be interested in the rules around this. Is there any advantage of purchasing through the business to only then sell it back to myself, or is it simpler to just purchase it myself?

  2. #2

    Super poster


    Join Date
    Jan 2009
    Location
    Near London, UK
    Posts
    4,282

    Default

    The market value of the laptop would be included in any capital distribution so you'd potentially pay some tax on it.

    Nothing is likely to come of it though I imagine if it was queried HMRC might question whether a laptop was wholly and exclusively for business if bought shortly before the company was closed.

  3. #3

    More time posting than coding


    Join Date
    Nov 2016
    Location
    Floating in a sea of hyperbole
    Posts
    414

    Default

    I would buy it now through the business because you need it for the business, and then sell it to yourself when you close down and dispose of assets.

    You never know, your plans might change and you don't end up closing down when you thought you might.
    First they ignore you, then they laugh at you, then they fight you, then you win. But Gandhi never had to deal with HMRC

  4. #4

    Should post faster


    Join Date
    Feb 2017
    Posts
    159

    Default

    When you purchase a piece of equipment you can currently claim Annual Investment Allowance to offset the entire cost of that asset against that year's profits.

    When you sell the asset, the value that you purchase it for will generate a balancing charge and the company will pay corporation tax on that charge.

    If you are buying and selling the asset within a short period of time then presumably that asset would not have reduced much in value and so the balancing charge wouldn't be very much less than the annual investment allowance making the tax effect close to neutral.

    Given the timing of purchase v company closure it is probably easiest to purchase this yourself.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •