Would you hold more than £75,000 in one bank?

[TheFaQQer]

Would you keep more that this amount in any one bank? (am talking about business funds in business accounts).

Probably not - but it's a nice dilemma to have

Any recommendations?

Bank of Cyprus have some good deposit accounts, IIRC.

[WTFH]

Doing what though? I don't want to take any risks with it, it took a long time to earn!

Got any debts/mortgages you could pay off?

[Lewis]

Got any debts/mortgages you could pay off?

I have but it's company money not mine unfortunately.

[seanraaron]

I don't need to imagine anything, who the hell do you think actually paid for the last bank bail out?

Yup, the public

Tch, so negative...you should consider how creative they are!

[MrMarkyMark]

Tch, so negative...you should consider how creative they are!

Sorry .

I should laud the excellent banking system, of the City of London, for their expertise in money laundering, thus facilitating drugs and arms sales, all over the globe.

Better?

[WordIsBond]

I have but it's company money not mine unfortunately.

It's really not the end of the world to pay higher rate tax on dividends and get some of that cleared up. If you are exceeding the £75K in more than 2 institutions, and you have a mortgage, it's probably time to get some of it out of the company. You'd want to do it before the rate goes up, obviously.

[seanraaron]

Sorry .

I should laud the excellent banking system, of the City of London, for their expertise in money laundering, thus facilitating drugs and arms sales, all over the globe.

Better?

Yes! Now how to leverage that skill. IT doesn't really seem a good fit...

[Lewis]

Probably not - but it's a nice dilemma to have



Bank of Cyprus have some good deposit accounts, IIRC.

Yes and no, it's been slowly accumulating for many years as I don't go into higher rate. I would dearly love to have it in my personal account, because it could be put to good use, but I'd rather leave it there than pay 25% tax (soon to be 32.5%!) - with a view to taking it as capital gain via ER when the company is eventually closed.

[LondonManc]

I have but it's company money not mine unfortunately.

Company money that you can pay out in dividends to the shareholders?

[WTFH]

Yes and no, it's been slowly accumulating for many years as I don't go into higher rate. I would dearly love to have it in my personal account, because it could be put to good use, but I'd rather leave it there than pay 25% tax (soon to be 32.5%!) - with a view to taking it as capital gain via ER when the company is eventually closed.

You're making the assumption that by the time you get round to closing the company the rules have not changed and you are liable to pay tax on it anyway.


As I see it:
Option 1: Get the money out now, pay 25% tax, pay down (or pay off) your personal debts
Option 2: Take the money out when borrowing/mortgage rates go up. You'll have paid more money servicing your personal debts and you'll pay 32.5% tax on the money
Option 3: Leave the money in the company, keep servicing your personal debts as the interest rates rise and hope that tax rules on ER don't change. (currently 10%, but I could be wrong)