Company to Company Start-up Investment

Philbert

Hello,

Need some advice from anyone in the know. I understand that a private individual can invest in a start-up which has been accredited under the BES scheme and benefit from tax back etc. I know how this works.

However can an actual established company (Ltd) invest in a start-up company and if so, are there any benefits to the established company, perhaps similar to the BES scheme?

Grateful for any light you can shed.

Thanks,

Philbert.

dbran

Hi

No. Only individuals can qualify for BES not companies. Companies pay corporation tax and not income tax.

Kind Regards

dbran

Philbert

Thanks dbran

Do you know if there is any benefit to such an investment? I.e. can the company write the corporation tax off the investment permantently?

Is there any system in place to support this type of investment?

Thanks.

staffhandbook

If the companies are all part of the same group. ie Parent company with child companies you can pass money around them freely.

Or the company pays an employee a big bonus.
This is an expense against corporation tax.
Employee invests in the company using the BES scheme.