Despite the economic downturn, many private limited companies still hold substantial amounts of cash in deposit accounts. These cash deposits will not give the company any scope for capital growth and to the extent that any interest is earned there will also be taxable income.
The existence of these funds means that there is a potential to give advice to a private company on the opportunities to achieve better and more tax efficient medium to long-term investment returns.
Regardless of the underlying investment fund choice, by making the investment through an appropriate investment wrapper, tax efficiency can be enhanced.
Opportunities exist to maximise tax efficiency and incorporate underlying guarantees with out giving up access to the capital should the need arise.
This in turn could make your capital work harder for you and increase the profitability of your business.