Keeping business assets personally: questions for your advisers

Identify the asset and its current recorded owner. Explain who would retain it, where it would go, how it would be used and whether any payment or other consideration is proposed. Mark uncertain facts rather than completing them from memory.

For a company, GOV.UK explains that the company is legally separate from its owners. A shareholder's wish to retain equipment therefore needs the appropriate company, legal and tax questions examined.

The use-and-ownership distinction helps gather the history. Keep acquisition evidence, relevant accounts information and finance documents available for the advisers to interpret.

Take the facts to the accountant or tax adviser and solicitor as appropriate. Ask what treatment, evidence, approvals and timing they need to assess. Do not assume that an old or low-use item has no tax consequence, or that a figure in the accounts is the correct value for every purpose.

If the asset would support continuing paid work, state that clearly. A private hobby intention and a continuing business intention give advisers different facts to examine. Keeping a limited amount of customer work can help define the practical proposal.

Where the business's ability to meet obligations is uncertain, obtain qualified advice before deciding that an owner can take an asset. Financial uncertainty changes the questions that must be addressed.

Keep the advice with the proposal version it assessed. If the intended recipient, use or terms change, ask whether the advice needs updating. Record the actual authorised outcome and the supporting evidence through the appropriate process.

The disposal list should distinguish a proposed retention, an unresolved question and a confirmed exclusion. Calling all three "owner keeping" makes it difficult for anyone else to know what has been decided.

Explain the current status to UK Auction Group, using recognisable asset references. The auctioneer can discuss the remaining equipment scope without being asked to determine the legal or tax treatment of the retained item. Once the position is confirmed, make sure all working lists reflect the same decision.

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