• From my accountant:

    "If you invest in another company, your company is then seen as an investment company and the tax rules are different for a company that is classed as an Investment Company. There are certain things that have to be done differently, the main one being that an investment company cannot be charged corporation tax at the small company tax rate of 20% and would need to pay the higher rate of 24% going forward.
    You are better off tax wise taking the payment as a dividend from your business and investing personally in the other company."

    What he said :D

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