Corporate cash investment
Put surplus company cash to work instead of leaving it sitting idle, earning next to nothing while inflation eats its value.
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What it is
Many trading companies build up cash they do not need for day-to-day running. Left on deposit it earns little and loses ground to inflation. Investing surplus company funds through a corporate investment plan aims to grow that money for the business, while keeping the access and risk level right for the company’s needs. It sits alongside, not instead of, taking money out of the company efficiently through an executive pension.
Who it is for
- Owner-directors with cash building up in the company
- Companies with reserves beyond their working-capital needs
- Businesses wanting an alternative to near-zero deposit returns
- Directors weighing investment against pension extraction
How it works
We agree how much the company can invest against how much it needs to keep liquid, set a risk level and a time horizon, and choose a diversified corporate investment plan. Access is built to suit the company’s cash-flow needs, and the plan is reviewed regularly.
Know the tax first
A company pays corporation tax on investment gains and income at 25%, higher than the 12.5% rate on trading profits, and close companies can face an additional surcharge on undistributed investment income. Corporate life-assurance investments also carry exit tax. Because of this, for many owner-directors funding an executive pension is the more efficient first move, since employer pension contributions are a deductible expense with no benefit in kind. Often the right answer is a mix of the two, and we work through it with you rather than push a single product.
Why talk to BDS
This is where expert advice earns its keep, balancing pension extraction, tax and investment for the company and the director together rather than in isolation. David and Barbara advise owner-directors across Limerick, Dublin and Galway.
Common questions
For many owner-directors, funding the pension comes first because it is so tax-efficient. Usually the answer is a mix, which we model with you.
A company pays 25% corporation tax on investment income, may face a close-company surcharge, and corporate funds carry exit tax. We factor all of it in.
The plan is built to suit the company’s cash-flow needs, so access is set to what the business is likely to require.
Deposit protects the capital but loses value to inflation. Investing carries risk but aims to grow the reserve. We match the balance to the company.
Other ways we invest
Important information
Tax rates, reliefs and thresholds referred to here are set by Revenue and apply to the 2026 tax year, including the exit tax reduction to 38% from January 2026. They can change in future Budgets and Finance Acts, and the right approach depends on your own circumstances. The examples are illustrations, not projections of return.
David Sheahan Insurance & Investments Ltd t/a BDS Financial is regulated by the Central Bank of Ireland. Reg. no. 115813. Offices in Limerick, Dublin and Galway.
This content is general information and is not financial advice. The value of investments can fall as well as rise.
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