Last year my wife put £8k into my company for the purchase of some equipment. It was our intention to pay the money back in its entirety. The company has suffered badly with our main customer going onto admin and leaving us owed a considerable amount of money so isn’t in a position to do this. I would like to transfer the item to my wife’s name and write off the money she borrowed the company, what are our options for doing this please?
You could do that ensuring that it is documented and accounted for as an arm’s length transaction to avoid scrutiny later should your company go into administration or liquidation. I’d suggest putting together “evidence” of how much the equipment would be worth should it be sold on the open market.
Make sure that the sale is properly accounted for in the accounts and tax returns.
If an administrator or liquidator does get appointed in the future and feels there is doubt as to the true intentions of this transaction they may try to undo it.
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.