Is there any reason why.....
Is there any reason why.....
Author
Discussion

Jasandjules

Original Poster:

72,642 posts

259 months

Friday 25th November 2016
quotequote all
My company can't invest in another company?

It is not about diversification at all but simply another revenue stream for the business. Is this possible?

Ideally I would have it as my pension but I know (at least I think I do) that the options to put into pensions are restricted.

Eric Mc

125,790 posts

295 months

Friday 25th November 2016
quotequote all
Do you mean "buy shares" in another company?

Or "Lend to another company"?

PurpleMoonlight

22,362 posts

187 months

Friday 25th November 2016
quotequote all
Jasandjules said:
Ideally I would have it as my pension but I know (at least I think I do) that the options to put into pensions are restricted.
£40,000 pa plus any carry forward unused from the previous three years.

Is that insufficient?

Jasandjules

Original Poster:

72,642 posts

259 months

Friday 25th November 2016
quotequote all
Eric Mc said:
Do you mean "buy shares" in another company?

Or "Lend to another company"?
Buy shares.

In essence instead of investing into a pension fund.

Purple - that would be enough but I wanted originally to put my pension money into say a property rental for future incomes but I was informed that it would be precluded

Jockman

18,414 posts

190 months

Friday 25th November 2016
quotequote all
Jasandjules said:
Purple - that would be enough but I wanted originally to put my pension money into say a property rental for future incomes but I was informed that it would be precluded
Commercial is fine.

Jasandjules

Original Poster:

72,642 posts

259 months

Friday 25th November 2016
quotequote all
Jockman said:
Commercial is fine.
Sadly it was a private rental I had in mind, purchase a small flat locally type of thing. I don't have the funds to step into the commercial market.

PurpleMoonlight

22,362 posts

187 months

Friday 25th November 2016
quotequote all
What sort of return are you looking for with the shares, growth or dividends?

Would the dividends be tax twice under company taxation, once under the company paying it and then again under yours as a profit?

PurpleMoonlight

22,362 posts

187 months

Friday 25th November 2016
quotequote all
Surely your Ltd can directly invest in a buy to let?

Jasandjules

Original Poster:

72,642 posts

259 months

Friday 25th November 2016
quotequote all
PurpleMoonlight said:
What sort of return are you looking for with the shares, growth or dividends?

Would the dividends be tax twice under company taxation, once under the company paying it and then again under yours as a profit?
Yes I would be looking to get shares and the dividends.

It appears my company can from what is said above simply directly invest in a buy to let which is most interesting though I then don't get the tax benefit of the pension element.

TooLateForAName

4,933 posts

214 months

Sunday 27th November 2016
quotequote all
Eric will know, but I thought there were some rules that if you did this then you changed the nature of your business and it became an investment company which means extra regulation/different tax rules.