Buying shares in different companies...

[davisc02]

I have quite a bit of spare capital in my business bank account and wouldn't mind putting some of it into a few companies listed on the stock market. Is this ok to do this and is there any tax implications I should watch out foe.

CHeers

[tim123]

I have quite a bit of spare capital in my business bank account and wouldn't mind putting some of it into a few companies listed on the stock market. Is this ok to do this and is there any tax implications I should watch out foe.

CHeers

No this is not a good thing to do. You are not an 'investment' company and unless there is a business benefit to your investment, you will not be allowed to offset your losses.

A company also does not get a CGT free allowance.

It doesn't make make sense to do this.

tim

[Nixon Williams]

It can be messy although possible. There are various tax issues to be aware of such as no Capital Gains allowances, corporation tax on profits and losses can only be offset against other investment losses.

If this becomes a big part of the companies activity then you also risk losing the small company rate of corporation tax.

Unless you know exactly what you are doing I would advise against this activity through your company.

Alan