CT on investments?

[Gordon Brown]

This may be a very simple answer or a very complex one:

I know we pay CT on any interest received on our business accounts but how does HMRC handle longer term investments?

We are thinking about putting some money away longer term ( corporate bonds etc). Is it any different to cash deposits as far as HMRC are concerned? I am presuming we will pay CT at the going rate on the returns as and when we get it back? Are there are ways to minimise the CT in terms of types of investment and when we egt the money back?

[Eric Mc]

I'm pretty sure that such investments, especially if they are "interest" generated, are taxed in same way as ordinary bank interest income.

If a company receives substantial amounts of income from investments compared to trading income, it may find itself losing some of the reduced tax ratyes applicable to small trading companies.

[Gordon Brown]

Eric Mc said:

If a company receives substantial amounts of income from investments compared to trading income, it may find itself losing some of the reduced tax ratyes applicable to small trading companies.

I don't think there is much risk of that!