I am a sole director and a shareholder wishing a transfer of assets from the company to me, as it was recently classed as an investment rather than a trading stock. In the circumstances, in my opinion, the asset no longer serves its purpose. If transferred, I can hold the asset in my personal name for capital gains tax purposes and pay tax as and when I realise it. I do not have the cash to pay any tax now. What options do I have, in your opinion, in this regard? 

Arthur Weller replies:  

If you transfer the asset from the company to your personal ownership, this transfer will be taxable: (a) for the company, on the capital gain that may be triggered; and (b) for you, as a dividend in specie, so dividend tax is payable. If the dividend is not worded correctly, there could also be stamp duty land tax (SDLT) for you to pay, if the asset is a property. If instead, you purchase it from the company, there will be no income tax for you to pay but there certainly will be SDLT for you to pay. If you purchase it, you must do so at the market value (see HMRC’s Employment Income manual at EIM2 1646, EIM21647), or else the difference will be taxable. If you purchase the asset from the company but do not pay for it immediately, this will become a loan that you owe the company and have 'director’s loan account in debit' consequences.