Setup a company for personal investment ?

B

bbc

Guest
Hi,

Is there any advantage to setting up a limited company for the purposes of my investments (e.g. I could claim expenses such as investment software, computers etc.). I'm sure if it was simple everyone would be doing it but I'd appreciate any advice.

In a similar vein, my family has asked to invest some of their money. I use e-trade to hold stocks etc. in my name. How should I invest on others' behalf (from a tax perspective)? I assume if I do it in my name then I'm liable for the CGT ?

Thanks
BBC
 
The assets will then belong to the company. When the assets are sold the company will pay CGT and you will then have to pay income tax when the company gives the money to you so you will be taxed twice.
 
Hi,
I'm looking to start this thread up again.

What if you used the company as a holding company (similar to berkshire hathaway............on a smaller scale :)

What if you never took capital out but used it to buy more investments......stocks, property, etc....??

I've been buying and selling large-ish amounts of stock recently and the 25% capital gains tax seems higher each time ..

Any opinions anyone?
Thanks,
Richard
 
it is even a worse idea now as CGT has risen.

The company will pay 25% CGT on the gains.

And when you eventually want to distribute the money to yourself out of the company, you will pay a further 25% CGT.

Brendan
 
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