S
svuhmed
Guest
I daytrade futures and currencies and am getting to the stage where it will be my only source of income. I am looking for the most tax efficient way of allowing as much of the profits over and above my personal income requirements to be retained - the more trading capital i can retain the sooner i can retire!
I will get professional advice on this but would be interested in opinions here.
I understand that if trading/investing is the primary source of income for an individual then you can't just pay cgt - you must treat profits as income and pay income tax / prsi.
One approach is to incorporate in a low tax/no tax jurisdiction - but apparently revenue are clamping down on this kind of approach.
Alternatively, set up as a company in Ireland (with 12.5% corporate tax). This gives rise to some of it's own potential issues
- I understand investments are taxed at a higher rate in companies - would this also apply if investing/trading is the primary nature of the business
- What is best way to transfer trading capital into a company - loan it to the company or transfer it to the company as equity?
- If some of the profits are paid into a self administered pension can i manage that pension fund myself or do i have to invest it in specific instruments (i could get a better return by managing the investment myself).
Anyway, as i say, interested in any thoughts and opinions
I will get professional advice on this but would be interested in opinions here.
I understand that if trading/investing is the primary source of income for an individual then you can't just pay cgt - you must treat profits as income and pay income tax / prsi.
One approach is to incorporate in a low tax/no tax jurisdiction - but apparently revenue are clamping down on this kind of approach.
Alternatively, set up as a company in Ireland (with 12.5% corporate tax). This gives rise to some of it's own potential issues
- I understand investments are taxed at a higher rate in companies - would this also apply if investing/trading is the primary nature of the business
- What is best way to transfer trading capital into a company - loan it to the company or transfer it to the company as equity?
- If some of the profits are paid into a self administered pension can i manage that pension fund myself or do i have to invest it in specific instruments (i could get a better return by managing the investment myself).
Anyway, as i say, interested in any thoughts and opinions