Spending company funds on assets not yet transferred

oz0707

Hi all,

Just a quick'n for you accountants out there as it's this time on a Friday.

Can a property company, start spending funds developing a property which hasn't yet transferred into the company name? The property is currently in my name.

It's not a major as if not I can spend out of my personal name and just adjust the transfer figure upwards by the amount. Just need to know either way. The purchases/spend will be on administration (build reg's application etc) related to the property

Thanks in advance.

colino

You certainly can do the admin prep work in this way, personally in the past I haven't, just kept it clean and simple by uplifting the price later.

antrobus

oz0707 wrote: »

....Can a property company, start spending funds developing a property which hasn't yet transferred into the company name? ....

Yes. As a general rule, companies can spend money on whatever they like. (There might be questions relating to the correct tax treatment of any payments, but that would be a different story.)