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Investing as a company? What are the tax benefits?
the_bathroom_doctor_2
Posts: 6 Forumite
Hi all,
new to the forum and hope I am asking this question in the correct section. I'll give a brief outline of my financial situation, just to put you in the picture.
I have been steadily building my small business over the last 4 years, which has been growing nicely. We are now producing some healthy monthly profits, which, I have been continually re-investing in new products and staff, but now feel I need to diversify my funds into other investments.
I am currently 41 years old, and am looking to invest in a few different areas for my future.
It bothers me to have a lump sum in the company account towards the end of each financial year, knowing full well that the tax man is waiting in the wings, rubbing his hands together ready to take 20% corporation tax from them!!
I have a company pension in place, which I put funds into, but what are the tax benefits when investing in say - shares or properties as a company?
Does the money you invest become 'spent funds' so as to avoid the dreaded corporation tax?
How are the profits from these investments taxed?
I appreciate any help.
Many thanks in advance
new to the forum and hope I am asking this question in the correct section. I'll give a brief outline of my financial situation, just to put you in the picture.
I have been steadily building my small business over the last 4 years, which has been growing nicely. We are now producing some healthy monthly profits, which, I have been continually re-investing in new products and staff, but now feel I need to diversify my funds into other investments.
I am currently 41 years old, and am looking to invest in a few different areas for my future.
It bothers me to have a lump sum in the company account towards the end of each financial year, knowing full well that the tax man is waiting in the wings, rubbing his hands together ready to take 20% corporation tax from them!!
I have a company pension in place, which I put funds into, but what are the tax benefits when investing in say - shares or properties as a company?
Does the money you invest become 'spent funds' so as to avoid the dreaded corporation tax?
How are the profits from these investments taxed?
I appreciate any help.
Many thanks in advance
0
Comments
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the_bathroom_doctor wrote: »but what are the tax benefits when investing in say - shares or properties as a company?
Does the money you invest become 'spent funds' so as to avoid the dreaded corporation tax?
Short answer: No, it is the same as putting the money in a savings account, it is just another asset. (See next answer also)How are the profits from these investments taxed?
Any profit/Loss is taxable, so either increases or reduces your company profit that the taxman gets a cut of.0 -
have you thought about lending to other businesses?0
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