Thank you. Do you have any links or further info about (c)?you need to add a (c) to your list: company law considerations on transfers of assets between company & owner.
I'm not in the right mind frame to look into it now, but I think there's a piece missing in your workings between real depreciation, and the capital allowances a company is allowed to claim on a passenger vehicle - it used to be capped at 24k, and I'm not aware of any recent changes to that. So the company will make a loss that it cannot get tax relief on.
Sorry, it's not something that will stop you doing it, but more you need to follow correct process. A sale of assets to a connected party needs to be passed at a General meeting of the company, if the asset is more than 10% of the company's assets. Or something along those lines, you should find it quickly enough searching 'company law connected party transactions'.Thank you. Do you have any links or further info about (c)?
Ah, I didn't look at your workings properly, and you're closer to the correct answer than I thought. You're not using one of the biggest benefits - the company can get accelerated capital allowances on EV, and write off 100% of 24k in year 1.Regarding capital allowances cap. It does seem to be €24k. Assuming that the car depreciates by 20% in a year then that would mean that the max depreciation I can claim is 20% of €24k, right? Do the calculations below look correct to you?
- Depreciation the company can claim within the cap (20% of €24k): €4,800
Thank you, I didn’t account for this. Probably a silly question but I’ll ask the question anyway, could I buy the car personally (to avail of the grant) and then the company buys the car from me the next day (at a slight discount to account for depreciation)?And one final consideration- the SEAI grant of 3,500 is only available for privately purchased passenger vehicles. If the company buys, there's no grant.
Will having a new car with 2 owners registered within weeks of its first drive impact on later resale values?Thank you, I didn’t account for this. Probably a silly question but I’ll ask the question anyway, could I buy the car personally (to avail of the grant) and then the company buys the car from me the next day (at a slight discount to account for depreciation)?
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