I am the sole shareholder and currently contract through my company. I have a surplus of cash in my business and would like to use this to buy a property outright for rental income. Can I buy it using my current company? What would be the tax implications?  

Arthur Weller replies:  

Your company is able to purchase a property for the purpose of renting out the property, using the cash that has accumulated in the company. There is nothing stopping a trading company deciding to 'branch out' into investment activities. But you have to appreciate that this will change the nature of your company, from being classified as a trading company, to now being classified as an investment company.