Rental equity withdrawl - Tax implications?

[SE1988]

Hi,

Got a quick question I was hoping someone can help with! I have a rental property which has appreciated in value, I want to draw out some equity and reinvest it elsewhere. Rental is being run as a company. If I draw out the equity and reinvest in bonds or stocks, still remaining within the company, are there any tax implications? Would I need to declare this to IRD anywhere?

Cheers

[Re@der]

If the company owns the assets that you have purchased there has been no payment to anyone so no tax on this but if these new assets earn income that will become part of the income of the company along with any tax paid on this income which will be able to be imputed.
If you have an ordinary company and take out equity as a dividend you have to pay tax on it. QCs you dont have to. If you wind up the company you dont have to. If you pay it out as wages to a person with a low tax rate they pay the tax on it.

That is the general picture.

[Rosco]

You are not really drawing out equity. All you are doing is using company funds to invest in shares, bonds, stocks or whatever, still through the company. So shouldn't be any tax implications at all. So if you have a revolving credit facility, and you draw down some to buy shares in company name, then won't be any problem, and interest will be claimable.

Drawing out equity or funds, would be if you took money out of the company, and then invested personally. And yes there could be implications of this, or better ways to do this.

I think you are making this seem more complicated than it is. Really everyday transaction. But if you are not clear or I have presumed something wrongly, let me know.
Ross