I have 100k what do I do?

troutman

I have 100k sitting in a limited company. I'm thinking it would be good to buy property with it perhaps I can then rent or reno. But I don't want to draw it paying tax etc. Is that the best way to invest if so what's the most tax efficient route. Or any other recommendations thanks.

billy2shots

troutman said:

I have 100k sitting in a limited company. I'm thinking it would be good to buy property with it perhaps I can then rent or reno. But I don't want to draw it paying tax etc. Is that the best way to invest if so what's the most tax efficient route. Or any other recommendations thanks.

How long has it been sitting in the ltd company. Have you already paid corporation tax?

If not then investing it or as much as you can into your pension is the most tax efficient solution. 

troutman

Hi yes Corp tax already taken into account. 

. I read about paying money from Ltd into a holding company and that company doing other functions etc. Being led to believe paying into a pension pot to help the government avoid paying for you when elderly is exactly what they want you to believe is your only option. 

billy2shots

troutman said:

 Being led to believe paying into a pension pot to help the government avoid paying for you when elderly is exactly what they want you to believe is your only option. 

Hmm, probably wise not to make a decision on your £100k until you do some further research into your understanding of the quoted point. 

You have just paid £19,000 in corporation tax when you could have had that £19,000 tax free at a later date (subject to staying within personal allowance etc) .

To compound things (excuse the pun) that £19,000 could have compounded up over the years between now and when you withdraw it and be worth a whole lot more than £19,000.

If you don't need the money now, pensions are by far the best way to take money from your ltd company. Hell, with enough carry forward you could have taken the entire £100k out tax free and then possibly paid no tax on it in the future (withdrawing within £12k a year for X number of years). 

Plus historically your £100k would be returning you an averaged out of 7-9% per year if invested sensibly. 

What the government may or may not give you in state pension is irrelevant. Invest in yourself, anything else is a bonus. 

mikep22

troutman said:

I have 100k sitting in a limited company. I'm thinking it would be good to buy property with it perhaps I can then rent or reno. But I don't want to draw it paying tax etc. Is that the best way to invest if so what's the most tax efficient route. Or any other recommendations thanks.

You could send it to me?