Depreciation of company PCs etc

[northernladuk]

Unless I’m missing something?

A frontal labotomy so you can think at PC's level.

HTH

[psychocandy]

2014 laptop is worth nothing as you should have depreciated it already.
2016 desktop..... pick a price you like. You’re the desktop support specialist so who can argue with your valuation?

No I aint. No desktop support experience ever. Server maybe,

[SlipTheJab]

No I aint. No desktop support experience ever. Server maybe,

Repeat after me.... 'have you tried switching it off an on again'

[MB2]

Assuming the hardware is worth anything significant, this probably isn’t the most tax efficient approach AFAICT.

If you buy them, then the company will have to pay a balancing charge on the sale of the asset before the remainder is distributed as capital subject to CGT.

I believe as OP will receive any assets as part of the capital distribution and any value will be used to calculate the capital gain charge that buying them is pointless.

Unless I’m missing something?

It depends if he wants the PC I guess ? The PC presumably is in his accounts currently (assuming 33% depreciation) at 66% of what he paid for it. If he only realises 100 for it then yes he puts 100 into the assets as cash for CGT/distribution but he has removed the 66% of value from the books and reduced Corp Tax by that amount. It probably is one for the accountants as usually we keep our stuff for more than 3 years and then say is scrapped and is not a liquidation.

If he wants the PC then I think that must be the least cost to him - assuming was a 600 desktop he has had VAT and corp tax against 500 and paid 100 (OK 125 as after tax money) - which he then gets taxed on at 10% ?

[northernladyuk]

I think we've got the wrong end of the stick, folks.

Your company's PC is utterly worthless.

[Lance]

I think we've got the wrong end of the stick, folks.

Your company's PC is utterly worthless.

Both of them

[northernladuk]

I think we've got the wrong end of the stick, folks.

Your company's PC is utterly worthless useless.

FTFY

[SlipTheJab]

FTFY

ouch