Buying shares using my UK LTD

[Waldorf]

I think that is why I said it depends on the person. I did also mention it as someone's retirement pot, so there would not be a plan to utilise ER and close the company, simply to use the income to live off in retirement.

I would be careful who I advised this to and I certainly wouldn't bother if you were talking about £20K, some people have serious pots of cash in which case it can be worth looking at.

Personally I have no plan to do this, I max out my ISA allowance, reinvest the dividends and have investments outside the ISA wrapper, I no longer invest in pensions.

Again, I would repeat, take advice but be wary of who gives it and whether they are swayed by a vested interest.

[electronicfur]

Take advice but often accountants advise against this because it can be horrendous to do the accounts if you have investments, certainly if you do lots of buying and selling. If you are not a but and hold person then doing it personally probably makes more sense.

The amount of work to do is similar whether the investments are held within your limited company, or whether they are held personally. Only if they are held in an ISA or Sipp is there less work.

I myself have quite a large investment portfolio in my company. I find it worthwhile to do this in order to avoid having to extract the money at the higher rate tax bracket. I invest the money instead in fixed income, subordinated bank debt, and high yielding shares. Then later I extract the money in years when I am not contracting due to sabbaticals. I've had advice which says the company will still be treated as a trading company if the sabbaticals are not too long, with 3 years being the longest I have taken. An additional advantage is that your limited company does not have to pay tax on any dividend income received from the investments, due to the double taxation rules. So I find it's better choosing fixed income securities that pay dividends rather than interest when holding inside a ltd company.

The above is what I do, whether it suits your circumstances is another matter. But for me it beats having to extract the money at the higher tax bracket, or having the money sat in a company bank account which only pays miserly interest.

[fidot]

Are you likely to be changing this approach

The above is what I do, whether it suits your circumstances is another matter. But for me it beats having to extract the money at the higher tax bracket, or having the money sat in a company bank account which only pays miserly interest.

Are you likely to be changing this approach given that, from next year, dividends will be attracting an additional 7.5% tax?

[electronicfur]

Are you likely to be changing this approach given that, from next year, dividends will be attracting an additional 7.5% tax?

Dividends extracted from the company will, but not dividends received from investments held by the company. So I'll probably keep the same approach, as it still allows me to invest my profit, and extract it later when on sabbatical at the lower tax rate of 7.5%, rather than immediately and hit the 32.5% rate.