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Posted Wed, 15 Feb 2023 14:45:07 GMT by Guido
Currently, I am self-employed and have a dormant LTD that I want to make active soon. Within the last 2-3 years I have bought equiment that was necessary for my job. However, once I make my LTD active, that equipment will still be needed for the new business. I have heard that I can sell the equipment I bought as self-employed to my LTD when it starts earning money, so that I can have advantage of such expenditure. What are the benefits in particular? What is the correct procedure I should follow to sell the equiment to my LTD?
Posted Wed, 22 Feb 2023 08:19:44 GMT by HMRC Admin 25
Hi Guido,

HMRC does not provide tax planning advice.

When your limited company becomes active you can claim capital allowances  on any equipment purchased by the company (including equipment that you originally purchased as a sole trader).  

 Claim capital allowances

Thank you. 

Posted Wed, 22 Feb 2023 12:21:15 GMT by Guido
Many thanks for that. And is the sale process as a self-employed as simple as making an invoice to my LTD? Then should I file a S.A. tax return as self-employed for that tax year, even if I have not got any income apart from that?
Posted Fri, 24 Feb 2023 14:51:41 GMT by HMRC Admin 20
Hi Guido,

You would need to wait until the tax year you commence trading as self employed.  You can then include this in the tax return for that year.

Thank you.

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