Company investments: put surplus company cash to work

Cash the business will not need for years can be invested in the company's name, with tax handled inside the structure and the money still owned by the company. We compare it with deposits and your pension, in euro, before you decide.

4.9 Google reviews 30,000+ clients Held in the company's name
Your pension options

Tell us about the company

Roughly how much cash the company holds, how much it needs to keep and when it might need the rest. A senior advisor is in touch with options.

  • No documents needed, ballpark figures are fine
  • One senior advisor for your area, not a call centre
  • Whole of market: every main Irish provider compared
30,000+clients across Ireland
4.9 Google rating
Your pension optionsStep 1 of 5

Which describes you?

Tax relief, contribution limits and the right plan differ between the three.

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How it works

Invested in the company's name, not yours

A company investment puts surplus cash into funds through a life assurance investment bond owned by the company. The money stays on the company's balance sheet and can be drawn back when the business needs it. Nothing leaves the company, so no personal tax arises.

We start with the reserve. Before anything is invested, the plan sets the cash the business should keep for wages, tax, suppliers and a bad quarter. Only money above that, which the company will not need for some years, is considered for investment.

  • Funds from Irish life companies, compared on charges and range
  • Owned by the company and shown on its balance sheet
  • Withdrawals possible, subject to the policy terms
  • A reserve agreed first, investments second
Tax

How the tax works inside the structure

Inside an Irish life assurance investment bond there is no tax year to year on income or gains. The life company deducts exit tax when a chargeable event happens: a withdrawal, the end of the policy, or every eighth anniversary. For a company policyholder the rate is 25%. Exit tax paid at an eighth anniversary is credited against the tax due when the money finally comes out.

Compare that with deposits. Interest earned by a company is non-trading income, taxed at 25% every year. If it is not distributed by a close company, a 20% surcharge on the after-tax investment income can apply on top.

  • No annual tax inside the bond
  • 25% exit tax for a company on gains, deducted by the life company
  • A deemed disposal every eight years, credited later
  • Deposit interest taxed at 25% every year

Company deposit or company investment

Company depositCompany investment bond
ReturnInterest set by the bankLinked to the funds chosen, can rise or fall
Tax25% corporation tax on interest each year25% exit tax on gains when a chargeable event happens
ProtectionEligible deposits covered up to €100,000 per depositor per institution under the Deposit Guarantee SchemeNot covered by the Deposit Guarantee Scheme; the value depends on the funds
AccessOn demand or at the end of a fixed termWithdrawals usually possible; the value can be lower than what went in
SuitsMoney the business may need within a year or twoMoney the business will not need for five years or more
Pension first?

Company investment or your pension

For an owner-director, the pension is often a better home for surplus cash than a company investment. A company contribution to your pension is deductible, is not a benefit in kind, and the fund grows without tax. The trade-off is access: pension money cannot be reached until retirement, while a company investment stays with the business.

Most plans use both: the pension for money you will not need before retirement, the company investment for cash the business may want back.

  • Pension contributions deductible for the company
  • Company investments stay available to the business
  • The split worked out from the company forecast
What happens next

How it works

1

Tell us about the company

Cash held, what the business needs and when, and what you want for yourself.

2

We set the reserve

The cash the company keeps, built from its costs, tax dates and plans.

3

We compare the routes

Deposit, pension contribution and company investment, in euro.

4

We agree the risk level

How much the value can move, matched to when the money might be needed.

5

We set it up

In the company's name, with the board's approval and the paperwork handled.

6

We review it every year

Performance, the reserve and the split, checked against the company's plans.

25%exit tax on gains for a company policyholder
8years between deemed disposals
€100,000Deposit Guarantee Scheme limit per depositor, per institution
30,000+clients advised by True Wealth
Google reviews

What clients say about their advisor.

Read all Google reviews
We (Richie and Nickey) received excellent pension advice that was clear, honest, and tailored to my situation. Everything was explained in a way we could easily understand, and we felt confident making decisions about my future. Highly professional service and very reassuring throughout the process.
RO
Richard O NeillPension advice
They made setting up a company pension on a deadline extremely easy and stress free. You can tell they understand the products inside out. Very approachable, great availability for support with instant and clear answers.
MK
Mairead KilbrideCompany pension
True Wealth was super efficient in locating my UK pension. They were very professional and responsive in dealing with the relevant pension organization. I would highly recommend True Wealth.
BW
Bridget WhooleyUK pension trace
Thank you for the several calls to advise me. Great client attention! Eimear is fantastic! I had my pension sorted and a few insurances arranged. All the best.
RD
Renan DevitaPension and protection
Excellent service. Always there if I had any questions, would recommend without hesitation. A 5 star service. Thank you everyone.
AH
Anthony HGeneral
Questions

Frequently asked questions

Straight answers with the figures. If yours is not here, a senior advisor answers it in your review.

Can a company invest in funds in Ireland?

Yes. A company can own a life assurance investment bond in its own name, invested in funds from an Irish life company. It stays a company asset.

How are company investments taxed?

There is no annual tax inside the bond. The life company deducts exit tax at 25% on gains when a chargeable event happens, including every eighth anniversary.

Can the company take money out?

Withdrawals are usually possible, in part or in full, subject to the policy terms. Early exit charges can apply on some funds, and the value may be lower than what went in.

Is it better than a deposit?

For money needed soon, a deposit is usually the right home. For money the business will not need for five years or more, an investment may grow faster, with the risk that its value can fall.

What about the close company surcharge?

Deposit interest is investment income. If a close company does not distribute its after-tax investment income within 18 months of the year end, a 20% surcharge can apply. We take that into account when comparing routes.

Should the company fund my pension instead?

Often, for money you will not need before retirement. A pension contribution is deductible and is not a benefit in kind, but the money is locked until retirement. A plan uses each route for what it does best.

What do we need to set it up?

Company details, a board resolution, and identification for the directors and the people who own the company. We tell you exactly what the provider needs.

Warnings

  • Warning: The value of your investment may go down as well as up.
  • Warning: If you invest in this product you may lose some or all of the money you invest.
  • Warning: Past performance is not a reliable guide to future performance.
  • Warning: This product may be affected by changes in currency exchange rates.

Put the company's surplus cash to work

Two minutes on the form. A senior advisor is in touch with the options in euro.

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