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    I have about £60k -£80k available in my limited company to invest each year. How can I best use this?

    19 July 2021

    Question by Kev

    I am a small business owner and have used the maximum £40k allowance for personal pension for both my wife and myself. I have about another £60k -£80k available in my limited company to invest each year (in addition to my £40k pension). How can I best use this - I do not need to earn an income from it - but I want to invest it through my company. Thank you.

    Answered by

    Hi Kev,

    Thank you for your question. Have you previously maximised your annual allowances for pensions? If not you're allowed to carry forward unused allowance for three years, so let's say you have paid £30k each into a pension for 2018/19, 2019/20 & 2020/21 then you would have £30k unused allowance for each of those tax years, meaning that you can pay an additional £30k each during the tax year 2021/22.

    I hope this helps, but if not then feel free to click on my contact button to ask me more.

    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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