Can I Invest on Behalf of My Company in an ISA for Higher Interest Rates?

Q. Can I Invest £100,000 on Behalf of My Company in a New Savings Account Designed for Individuals, to Take Advantage of a Higher Interest Rate? I Plan to Return the Capital Plus All Interest Directly to the Company’s Account.

A: You can do this, but you need to be honest with the bank that the company is the ultimate owner of the funds, and you are acting as a nominee for the company for that account. Transfer the money directly from the company’s account into the new savings account and do not mix it with any private savings.

The company’s board of directors should document what is happening to the funds and approve the transfer. This needs to be made clear that the transfer is not a loan to yourself as an individual. Taking a loan from your company that remains outstanding for more than 9 months after the company’s year-end will trigger a Section 455 tax corporation charge, and a beneficial loan charge for you personally.

 

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