Call us on 01202 622223 for a no obligation consultation
Call us on 01202 622223 for a no obligation consultation


Companies will often invest surplus profits rather than retaining funds in the business (especially as business banking accounts typically pay lower rates than for private money) or declaring large dividends to Directors and Shareholders, which could leave the company exposed to financial risk if there is a downturn in business.

At Apex CB Financial Planning we provide specialist corporate investment advice and can recommend investment vehicles that meet the company’s objectives, whilst minimising the potential tax liabilities.

OEICs and Unit Trusts

  • For companies buying shares or investing in predominantly share-based investments like unit trusts, the 10% tax credit is deemed to meet the company’s Corporation Tax (CT) liability (whatever rate the company pays)
  • On disposal, capital gains would be taxable but after allowance for indexation
  • However, equity based investments likely to be volatile and might not sit well with the corporate attitude to risk

International Bonds

The Finance Act 2008 removed the availability of 5% tax deferred withdrawals for ALL companies. It also introduced the concept of the company being taxed on an arising basis on the growth in value in the bond each year. However, this basis only applies to larger companies taxed on a ‘fair value’ basis.

  • International bonds continue to be attractive for smaller companies as the ability to roll-up gains with tax deferred can be desirable – especially if your company profits fluctuate from year to year and losses are occasionally suffered
  • The bond is shown in the Balance Sheet at the end of the company’s accounting period at the original premium amount regardless of the actual surrender value
  • No annual gain (or loss) is recognised in the company accounts meaning that no corporation tax consequences arise. The company defers tax on growth until there is a disposal event such as full or partial surrender.

Onshore Bonds

  • Despite the fact that the internal tax paid within the bond is likely to be lower than 20%, it is deemed to meet entirely your company’s Corporation Tax liability
  • A company year in which a loss is suffered may provide an opportunity to sell some or all of the international bond without giving rise to a CT liability
  • If the profit stream is relatively stable, any offshore bond gain on sale will give rise to CT, and no allowances will have been made for indexation or fund expenses. In these circumstances, company use of onshore bonds may prove appropriate.

To find out more about how we could help your company to improve the return on its surplus capital, call 01202 622223 or contact us using our online enquiry form.

Corporate services


Tax planning

In conjunction with our specialist taxation partners and your accountant we are able to help companies to reduce their corporation tax liabilities and set up highly tax efficient remuneration schemes for senior management. read more

Corporate pension schemes

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Business protection insurance

Many business owners put more planning into their personal and family lives than their businesses, leaving too many things to chance. At Apex CB we can help you to ensure that your business is comprehensively protected against a wide range of risks, using products such as Share Protection, Key Person Protection and Business Loan Protection. read more
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