LTD company property purchase

[tim123]

Perhaps there was a misunderstanding in my post.

I wasn't moralizing.

When I said that you shouldn't invest the company's cash in speculative investments, I didn't mean that you weren't allowed to do it. I meant that it's not financially expedient to do so.

tim

[Bradley]

Investment Company

where does that 30% come from? As far as I was aware you pay stamp duty on the investment, corporation tax on the profit (adjusted down for inflation) then normal salary and dividend tax as you take money out of the company...

the full rate of corporation tax (i.e. 30%) applies to companies that don't trade but just carry on the business of investing. The 19% rate is reserved for trading companies.

[ratewhore]

Ah never knew that Bradley - thanks for that! So, if a company do a bit of both then does 19% apply throughout or is the 30% applied to any profit from investment? Or do I need to go and Google it myself or read the HMRC website?

[Bradley]

19%

Ah never knew that Bradley - thanks for that! So, if a company do a bit of both then does 19% apply throughout or is the 30% applied to any profit from investment? Or do I need to go and Google it myself or read the HMRC website?

If you're predominantly trading then its 19% on all income including investment income.