Rooster6655
Active Member
The company could use the money to buy Tesla shares. Then by the time you sold it and the capitol charge came due you'd be rich/screwed (delete as applicable).
Let's say you save paying 10K in tax, you could invest that in a lower risk fund and get an average of 6% a year over 5 years, over 5 years thats about 3.3k and about 8k over 10 years, this cost would be of course vs the cost of BIK and lower mileage rates and then paying CT on any gains, this also assumes you won't need to use the money for anything else.
Sole Directors who keep their earnings below the higher tax bracket to be tax efficient and keep their money in their company will probably be the ones to benefit the most as its a way to spend your company money without having a large personal tax liability (BIK).
I also heard from an accountant that the director can set the levels of depreciation for assets such as cars.