Index tracker investmet using ltd biz cash?

[richy]

Thanks for the replies with links!
Cheers, rich

[jetrimby]

Depends on individual circumstances but generally better off not keeping too much cash (and no investments) in a company as you are likely to lose your "trading" status for Inheritance tax/capital gains/ and possiblity corporation tax putting you into the 28% band rather than 21% Generally best way is to get monies out effeciently and invest privately.

If thinking pensions then get monies out directly into pensions BUT be wary of pension costs/restrictions on investments and withdrawals etc... plenty on this site about this.
If you still want to retain in the company I have had a cash fund pass my way last month paying between 4 and 5% 1 year bond access after 6 months legally 90% protected (so not quite as good as banks at lower amounts) Min £50k. I can't advise on whether good or not though they have an IFA attached. It's a bit crafty on the tax planning which I do advise on but doesn't make large difference for company investments. Private mail if you want more details.

[northernladuk]

There are a number of threads on here that cover this but I seem to remember that you have to reclassify your business as an investment company if you are going put a reasonable amount of cash in to this idea.

Have a look at

Investment stuff

and

More stuff

There is plenty more on here somewhere.

[richy]

Hi
Ltd co has quite a lot of cash in biz bank account. even Scottish Widows deposit account only pays a little interest.

Anyone done any biz investments in ftse index tracker etc?

Cheers, rich