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Slash the cash? Should companies invest?

Session: Thursday 19 May 2022

Companies come in all shapes and sizes, from small or medium-size businesses found in many cities across the UK, to individuals with their own personal service company which they use to contract out their services.

What they have in common is a company bank account which may well hold surplus cash - cash that could be working harder for the business and it's owners.

On this webinar Graeme Robb and Mark Devlin, Senior Technical Managers from the M&G Wealth Technical Team took you through the key tax and planning considerations when investing corporate money. And what the corporation tax changes might mean for those company investments that have already been made.

After taking part in that session you should now be able to:

  • Identify the key considerations when dealing with corporate investments
  • Explain the Capital Gains Tax and Inheritance Tax implications for individuals where their company makes an investment
  • Describe the corporation tax treatment of company owned investments

Presenters - Graeme Robb - Senior Technical Manager 
                     -  Mark Devlin - Senior Technical Manager

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below. 

Test your knowledge


1.        For Capital Gains Tax purposes, most companies will have some activities that are not trading but still qualify as trading if their non trading activities are not substantial. HMRC consider ‘substantial’ means more than…

a)       20%

b)       40%

c)       60%

d)       80%

 

2.        Investment Bonds and ‘interest’ OEIC funds owned by companies are taxed under the…

a)       Fair Value rules

b)       Historic cost rules

c)       Chargeable event rules

d)       Loan relationship rules

 

3.        From 1 April 2023, the main corporation tax rate will be increased to

a)       20%

b)       21%

c)       23%

d)       25%

 

4.        The ‘excepted asset’ test has implications for

a)       Capital Gains Tax purposes

b)       Inheritance Tax purposes

c)       Corporation Tax

d)       Income tax

 

Claim your CPD certificate