Closing down company soon, need to purchase a new laptop

[Patrick@Intouch]

When you purchase a piece of equipment you can currently claim Annual Investment Allowance to offset the entire cost of that asset against that year's profits.

When you sell the asset, the value that you purchase it for will generate a balancing charge and the company will pay corporation tax on that charge.

If you are buying and selling the asset within a short period of time then presumably that asset would not have reduced much in value and so the balancing charge wouldn't be very much less than the annual investment allowance making the tax effect close to neutral.

Given the timing of purchase v company closure it is probably easiest to purchase this yourself.

[RonBW]

I would buy it now through the business because you need it for the business, and then sell it to yourself when you close down and dispose of assets.

You never know, your plans might change and you don't end up closing down when you thought you might.

[TheCyclingProgrammer]

The market value of the laptop would be included in any capital distribution so you'd potentially pay some tax on it.

Nothing is likely to come of it though I imagine if it was queried HMRC might question whether a laptop was wholly and exclusively for business if bought shortly before the company was closed.

[turbo]

I'm planning on shutting down my company shortly - maybe in the next couple of months. The company currently owns a laptop purchased around four years ago which is on its last legs. Would it be frowned upon purchasing another through the company just before shutting down? I would end up selling it to myself upon shutdown - would be interested in the rules around this. Is there any advantage of purchasing through the business to only then sell it back to myself, or is it simpler to just purchase it myself?