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Company A has a VAN which was purchased using a Loan from an individual.
Company A is VAT registered and claimed the VAT back on the purchase of the VAN
The VAN has been depreciating over time.
Company A would like to transfer the ownership of the VAN and also the loan to Company B - Company B is a self employed construction worker.
The owner of company A would like to just sell the VAN for £1 but I feel there are both Tax and VAT implications which I am not understanding.
No actual money is going to be transacted.
Please can someone advise on the journal that I need to post.
Currently I have the following on the Balance Sheet
Debit Credit
VAN 13935 (purchase price NET of VAT)
VAN Dep 3019
Loan Account 15000
Many thanks
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