How can I invest my money

[TanyaWWW]

VCTs EISs and property

I agree that pension is the first way to go - but the other options I've looked in to are

1. Venture Capital Trusts - invests in smaller higher risks businesses and your money is invested for min 5 years - I tend to invest in whatever Best Invest give 5 stars. Because it is higher risk, the government will give you a 30% tax break on the extra dividends you pull out to fund it

2. Enterprise Investment Scheme - less transparent than VCTs and harder to judge, so I haven't invested in these. On the upside it's 3 years instead of 5, losses are claimable, and there's more of a focus on exit strategy and returning your cash at the end. 30% tax break also applies

3. Use the retained profit in your company to set up another company (SPV) and buy property to rent out - I'm currently looking into this. Will be a lot of hassle for not much return, but a long term investment and hopefully capital growth in 10-20 years time

[filthy1980]

I agree that pension is the first way to go - but the other options I've looked in to are

1. Venture Capital Trusts - invests in smaller higher risks businesses and your money is invested for min 5 years - I tend to invest in whatever Best Invest give 5 stars. Because it is higher risk, the government will give you a 30% tax break on the extra dividends you pull out to fund it

2. Enterprise Investment Scheme - less transparent than VCTs and harder to judge, so I haven't invested in these. On the upside it's 3 years instead of 5, losses are claimable, and there's more of a focus on exit strategy and returning your cash at the end. 30% tax break also applies

3. Use the retained profit in your company to set up another company (SPV) and buy property to rent out - I'm currently looking into this. Will be a lot of hassle for not much return, but a long term investment and hopefully capital growth in 10-20 years time

my IFA mentioned VCT's & EIS's have other expenditure at the minute so not a lot to invest but worth knowing how viable these schemes are in terms of tax efficiency

[kiwilondon99]

Co bank account cash investment & interest on surplus £

on the subject of Company money + investment, who is investing Co cash short term ? ie as a
Treasury function with surplus Co cashflow

and into what products /or accounts

would be interetsed to know what rates % are around for short term funds...

any bankers out there or Treasury speacialists who could advise..

[Pegasus]

3. Use the retained profit in your company to set up another company (SPV) and buy property to rent out - I'm currently looking into this. Will be a lot of hassle for not much return, but a long term investment and hopefully capital growth in 10-20 years time

Hi Tanya,

I have also been looking at this option. Had a chat with my accountant last week. He was of the view that this structure (giving a loan to another company to buy a rental property) may reduce the chance of getting Enterpreneur Relief as and when we close the limited company. I am not yet sure why that would be the case, as from the viewpoint of the limited company, this is just a loan on which you are getting market interest.

Please let me know what you find out.

Anyone else also looked into this option? What are your thoughts regarding my accountant's comments about the ERC bit?

Thanks in advance.

[Pegasus]

Hi,

Has anyone heard of or invested with these guys:
Property Development Investment Company ? Inspired Asset Management

Or anyone has any experience with something else on similar lines?
Like LendInvest etc (investing money directly from the company)?

Any views much appreciated.

Thanks.

[ChrisFromGreece]

If I may, I would also suggest SavingStream.

Have invested some money there for the past year and a half, solid 12% per year. Never had any loans default on me.

If anyone is interested, gimme a shout so I can refer you.

[Fred Bloggs]

If I may, I would also suggest SavingStream.

Have invested some money there for the past year and a half, solid 12% per year. Never had any loans default on me.

If anyone is interested, gimme a shout so I can refer you.

12%? Is it run by a Mr B Madoff by any chance? In todays world, that kind of return falls into the "too good to be true" category.

[Darren at Fox-Bartfield]

Property Investment

Spoken with our Wealth Management dept, they've not come across these guys before but do deal with similar and the returns tend to be 8-15% depending on the projects. The usual disclaimers apply, value of investments can go up as well as down, not for everyone, etc but they can be a usual part of an investment strategy/plan.

Being a regulated firm, our guys did say that we couldn't deal with a company like this as they're not offering a regulated product.

[Fred Bloggs]

Spoken with our Wealth Management dept, they've not come across these guys before but do deal with similar and the returns tend to be 8-15% depending on the projects. The usual disclaimers apply, value of investments can go up as well as down, not for everyone, etc but they can be a usual part of an investment strategy/plan.

Being a regulated firm, our guys did say that we couldn't deal with a company like this as they're not offering a regulated product.

And if anyone needs any further convincing, over on the Citywire forums is a bloke who put nearly half a million into an unregulated investment scheme. And guess what? He can't get access to his money.

[CompulsiveArsonist]

And if anyone needs any further convincing, over on the Citywire forums is a bloke who put nearly half a million into an unregulated investment scheme. And guess what? He can't get access to his money.

Unless you are directly involved with managing the project or personally know the individuals involved it is a massive gamble.

I have a small stake in a commercial to residential development project through family and I have some contractor friends who are interested in investing too but the only reason I would recommend it is that I know the other people involved and they have successfully completed other developments so they have experience. I also trust the fact that should any of the other partners need to put any additional money in they have the means to do so, everything is being done without any bank finance so there is no chance that the bank will repossess the property.

We need to spend money to cover the cost of business rates, insurance etc while planning permission for the residential conversion comes through. It may be the case that planning permission isn't granted, Plan B in that case would be to fill up the commercial offices with tenants increasing the yield for an investor and then selling up perhaps taking a small loss, or alternatively holding the property until we get something back through rental income so it is a risk and the money could potentially be tied up for some time.