company car and selling the ltd company

cherry2017

I'm planning to buy a car, but I might sell my ltd company soon, how much do I have to pay the car if i sell the ltd company? I mean If I buy the car with full payment, not leasing the car. 
Thanks

DullGreyGuy

So you have a car thats owned outright by a company and you are planning to sell the company but want to keep the car?

In principle you should buy the car from the company at market value, an easy mechanism is just put it into We Buy Any Car or such and pay the company whatever it says remembering to account for VAT appropriately (assuming the company is VAT registered)

cherry2017

DullGreyGuy said:

So you have a car thats owned outright by a company and you are planning to sell the company but want to keep the car?

In principle you should buy the car from the company at market value, an easy mechanism is just put it into We Buy Any Car or such and pay the company whatever it says remembering to account for VAT appropriately (assuming the company is VAT registered)

Thanks, market price is fair.

Grumpy_chap

Will this be an EV car?

Given the planned exit from the company, would it not be simpler to buy the car privately (outside the Ltd Co.) and simply claim mileage?

DullGreyGuy

cherry2017 said:

DullGreyGuy said:

So you have a car thats owned outright by a company and you are planning to sell the company but want to keep the car?

In principle you should buy the car from the company at market value, an easy mechanism is just put it into We Buy Any Car or such and pay the company whatever it says remembering to account for VAT appropriately (assuming the company is VAT registered)

Thanks, market price is fair.

Thats the general concept of arms length pricing when it comes to transactions between related parties. More often seen in international corporations where a service company is set up in a tax haven and takes on the task of supplying the corporations stationary and starts charging their UK entity £10 per paperclip or staple so that they make no profits here and crystallise all the profits in the low tax location. 

In reality many small businesses may sell their shareholders assets at well below market value to minimise the tax as they aren't routinely audited but then you'll get less when you sell the company having stripped it of an asset below its value. What the deltas are really depends on how the asset was held on the balance sheet and how much the buyer valued the asset.