Tax position on company investments?

(5 Posts)
GrumpyOldBag Sat 24-Jun-17 14:24:02

Any accountants around? I am a consultant with my own limited company. I've got quite a lot of cash sitting in the business at the moment, have already paid my maximum dividend, don't want to pay it to myself as I'll have to pay more income tax on it, and I'd like to invest some of it to earn a return, as inflation is rising.

If I do this does it count as tax-deductible - although obviously I'd pay tax on the interest/returns earned from the money (but could also lose money on the investments)?

Thanks!

OP’s posts: |
Badbadbunny Sat 24-Jun-17 19:35:09

No, it's an investment, not an expense, so not a deduction to reduce profits and corporation tax.

GrumpyOldBag Sun 25-Jun-17 11:33:33

Thanks Badbunny. If the company ended up losing money on the investments, would that be a tax-deductible loss?

OP’s posts: |
Badbadbunny Sun 25-Jun-17 13:09:40

It would be a capital loss only available to set against capital gains (i.e. on other investments) and NOT against normal trading profits.

GrumpyOldBag Sun 25-Jun-17 13:11:08

Thank you :-)

OP’s posts: |

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