Guide to Corporate Investments

Business Wealth

USING EXCESS CASH

Whichever option is chosen, a top priority is usually tax-efficiency, ideally combined with the additional benefits of security, easy access and flexibility.

TREATMENT OF CERTAIN INVESTMENTS

The loan relationship legislation was originally introduced in the Finance Act 1996. The Finance Act 2008 extended the loan relationship rules to include life assurance policies.

TAXATION OF CORPORATE INVESTMENTS

The accountancy practice a company adopts will be dictated by their position under the Financial Reporting Standard 102 (small entities) and 105 (micro-entities).

WHAT DOES THIS MEAN FOR COMPANIES WHO WISH TO INVEST

For companies using fair value accounting, onshore and offshore bonds are unlikely to be considered ‘basic financial instruments’ and as such they will need to be reported annually.

Guide to Corporate Investments Download

Disclaimers:

The value of investments and the income they produce can fall as well as rise, you may get back less than you invested.

Tax treatment varies according to individual circumstance and is subject to change.