Corporate Investments

If your Company has surplus cash, the traditional destination for these funds; bank deposits, offer little or no return and in some cases, you will be charged by the bank for their custody.

Companies now need to look elsewhere to invest these funds, or simply accept the fact that, when inflation is factored in, the value of any cash they hold on a long term basis will be reduce in value.

Many companies will have a percentage of cash funds which may never be required but act as a buffer for the company. As an alternative to leaving the monies stagnate, you could look at investing these funds in assets with the potential to generate a return of above inflation over a medium to long term basis (5 to 7 years). Typically, this will involve assuming an element of risk but by diversifying your investment across asset classes, such as shares, bonds and property, you can manage the risk and still give the funds a chance to generate a decent return.

Some important features to note;

  • By using an investment bond created by a life company, tax is 25% on the growth on exit versus 33% for CGT
  • Exit can be deferred for up to 8 years – no annual return required or tax liability generated
  • The Close Company Surcharge of 20% does not apply to life assurance investment bonds

MoneyCoach works to identify the most suitable investment for your Company’s needs. We talk to you about how long you want to invest the funds for, what level of risk you are willing to take, and what kind of return you are targeting.

Why not speak to one of our investment experts – get in touch through the Quick Enquiry, Live Chat during office hours, by phone on 1890 428 343 or through our Contact Page.