I have a limited company which holds a few thousand pounds of retained profit (due to my being in the 40% tax band, I don't want to take dividend for a few years).
What could it invest it in, to guard the value of the retained profit against inflation? (The company may need the money in the future, but at 12+ months notice.)
Investing in shares seems to have horribly complex consequences for a limited company (associated companies CT band reduction, etc.) and also seems tax inefficient.
* I'm considering having the company buy stirling denominated gold coins.
* I'm also considering having the company pay money into my SIPP (as a company contribution to a director's pension), which will go against the CT bill. I can't then get that money back into the company if I need it though.
Are there better options?
Thanks,
Chris.
Replies (4)
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The answer to your opening question is that the company can invest in whatever it likes. The rest of your question is, in effect, a request for investment advice (I.e. what would it be wise or prudent for the company to invest in?), of a type which few accountants are authorised to provide. You need to put those questions to a duly authorised investment adviser.
What's complex about the stocks and shares?
A personal investment company is looking more attractive as mainstream CT rate is falling.
The complexities of investing in shares that you refer to only apply if you acquire a controlling interest in another company.