I have a limited company that, unfortunately, due to health reasons, I need to close. The company holds certain assets, including machinery which I wish to retain, and raw materials for which I have not yet determined an appropriate course of action. The company has no external liabilities, and the only outstanding balance is the director’s loan owed to me, which was used to fund the purchase of these assets. Is it permissible to transfer the company’s assets to myself in order to settle the director’s loan?. 

Arthur replies: 

It is permissible to transfer the company’s assets to yourself in order to settle the director’s loan owed to you. But any transfers to you will have to be at current market value. Transfers of raw materials will be at the price the company could be expected to be able to sell currently, and not at the price it cost the company to buy originally. Regarding the machinery, you will have to take note of the capital allowances history because a balancing charge may result.