Corporate Investment

Successful private companies sometimes have cash on deposit that is not required as working capital and has not been set aside for a specific purpose. Consequently, there are often opportunities to consider the investment of corporate funds.
However, before an investment is made, there are tax and other consequences that need to be taken into account. In particular, the company should always assess its current and medium term need for cash and general liquidity requirements; as well as tax (pensions) / commercially beneficial (capital equipment) investment, before considering any ordinary investment of corporate funds. Companies have special rules applicable to them when they invest into investment bonds or interest based collective investments – the loan relationship rules.