Charity investment
Explains the tax treatment of chargeable gains when a charity holds a bond.
Corporate investment
Explains the taxation of a company investing in a bond.
Learn about the taxation of a company investing in a bond in the UK
Previously, smaller companies could invest surplus cash into investment bonds* and, if the historic cost method of accounting was adopted, they could benefit from tax deferral and therefore have no corporation tax to pay on the bond gains until they were realised. However, following an EU accounting directive, this benefit is unlikely to be available.
Holding surplus company funds in cash can be inefficient, yet investing through a company brings its own tax and accounting complexities.
This briefing note looks at the main options for corporate investing, how different investments are taxed in a company, and the practical issues directors should consider. It will help you evaluate whether, when and how corporate investment strategies can support business and shareholder objectives.
Read more about how corporate investment bonds work.
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Taking money from a bond
Learn how to take money from an investment bond. Discover the differences between partial and full surrender, and how they affect tax and allowances.
Order of Taxation
Learn how different types of income are taxed and how they fit into a client’s income tax calculation.
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*Whole of Life Assurance Policy or Capital Redemption Bond