I have a situation where a family loan was given to the company to buy a VAN. The company is no longer able to pay back the loan but the family member would like the VAN in exchange. The company is VAT registered and claimed the VAT on the VAN and I am wanting to know the best way to deal with this on the accounts.
They have a creditor relating to the value of the original loan and have the VAN as an asset which has been depreciating. I want to make sure that the company obeys all the rules relating to VAT and TAX.