Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Transfer jeep from my business to a company

  • 08-04-2019 10:52am
    #1
    safety course Ireland
    Registered Users, Registered Users 2 Posts: 1 ✭


    hi . Please excuse my ignorance when it comes to this my head does be wreaked .
    I recently closed my old sole trader business and started up a company doing safety courses. how do i transfer the jeep to the new company ownership and claim it as a expense also would i need to change the insurance details and tax details . insurance is out tax is out .


Comments

  • #2
    Paddy001
    Registered Users, Registered Users 2 Posts: 724 ✭✭✭Paddy001


    safety course Ireland wrote: »
    hi . Please excuse my ignorance when it comes to this my head does be wreaked .
    I recently closed my old sole trader business and started up a company doing safety courses. how do i transfer the jeep to the new company ownership and claim it as a expense also would i need to change the insurance details and tax details . insurance is out tax is out .

    Hi. The company is a separate legal person/entity. In this scenario, for the most part, you can think of it like another person. You will need to sell it to your company at market value and your company will need to tax and insure it appropriately.

    You also need to consider benefit in kind ("BIK") tax if the vehicle is used by you personally. This is based on the original market value ("OMV") of the vehicle - ie its cost when it was new. If it is a true commercial, BIK is 5% of the OMV and if it is a car, the rate ranges from 6% to 30% depending on the business mileage covered in a year.

    The BIK figure is effectively put through payroll as an additional notional payment to you so the net effect is you pay additional tax being your marginal rate of tax as a percentage of the BIK due.


  • #3
    tanit
    Registered Users, Registered Users 2 Posts: 325 ✭✭tanit


    safety course Ireland wrote: »
    hi . Please excuse my ignorance when it comes to this my head does be wreaked .
    I recently closed my old sole trader business and started up a company doing safety courses. how do i transfer the jeep to the new company ownership and claim it as a expense also would i need to change the insurance details and tax details . insurance is out tax is out .

    There is what is called Sect 600 Transfer of Business Relief that if you are doing a transfer from a sole trader to a company of a trade, under specific conditions will provide you with a deferral of any Capital Gains Tax you would be liable on transfer of assets. Generally that would cover premises, goodwill, but no plant & machinery as that might fall under Capital Allowances.

    If the company you are creating is effectively the transfer of the business/trade from you being a sole trader to a company and there are more assets than the jeep (goodwill will count as such) you might want to ask proper advice from your accountant or a tax adviser as there might be more tax implications that CGT, Cap Allow, Stamp Duty (you might also be liable to that on certain circumstances if transfer is not on delivery, please correct me if I'm wrong)

    In any case once the jeep is part of the company you will have to consider BIK as Paddy001 is telling you in his answer.


Advertisement