Investing Surplus Funds In A Limited Company
Posted: May 18th, 2023, 4:05 pm
I have some funds in a limited company which I'd like to invest in shares, without extracting from the company (and incurring the income tax on the dividends).
Has anyone done this?
A recommendation for a broker that accepts limited company accounts would be useful.
Also, the information I can find online re the tax treatment is inconsistent. A couple of articles (as below) talk about penal taxes on investment income rising to 40% within the company but other articles don't mention this and I can find no mention of it on HMRC's website which leads me to conclude these are probably incorrect.
https://realbusiness.co.uk/investing-sh ... ed-company
https://businessadvice.co.uk/legal-advi ... ple-truth/
Any helpful information appreciated
Ron
Has anyone done this?
A recommendation for a broker that accepts limited company accounts would be useful.
Also, the information I can find online re the tax treatment is inconsistent. A couple of articles (as below) talk about penal taxes on investment income rising to 40% within the company but other articles don't mention this and I can find no mention of it on HMRC's website which leads me to conclude these are probably incorrect.
https://realbusiness.co.uk/investing-sh ... ed-company
https://businessadvice.co.uk/legal-advi ... ple-truth/
Any helpful information appreciated
Ron