investing profit in another company

[stacks]

Just starting up another company with myself and the wife as directors. It's nothing to do with IT but I need some start up capital (about 5k). Can I invest some of my profit from my current business directly into the new one?

I will ask my accountants but thought I'd open it to the floor as I'm sure some of you have been down this route already!

[Sockpuppet]

You could give yourself a £5k loan from yourco to you. Then stick this into the NewCo.

You could also give other co a loan at commercial rates.

[TheFaQQer]

I would clearly separate the two businesses - investing from one of your companies into another one could be problematic in terms of becoming an investment vehicle.

Take the money from your current company as a dividend, and then use it as capital. Or loan newco the money out of your existing (personal) cash in the bank and then repay that loan from the company when you have funds available.