Investing in crypto currencies via LTD company account??

[aj4u]

Hello All,

Just wondering if its feasible to invest into crypto currencies from my LTD company account ..

what tax I will be liable for and when, i.e. if I invest using my LTD company and hold the coins does it make a difference? Also if I do sell am I liable for Corp & CGT ??

I have tried to search the forum/ looked the interwebs without much fruit. Any help greatly appreciated

Thanks Arjun

[northernladuk]

Worth asking your accountant?

[TheCyclingProgrammer]

Your investment profits would be subject to corporation tax.

[NotAllThere]

There are many threads about investing via a ltd company. Why should there be any difference just because it's crypto currencies you're investing in rather than Sainsburys?

[Fred Bloggs]

Your investment profits would be subject to corporation tax.

Look on the bright side though, the (inevitable) losses can offset the tax too.

[Lance]

There are many threads about investing via a ltd company. Why should there be any difference just because it's crypto currencies you're investing in rather than Sainsburys?

The big difference between crypto currencies and other investments is traceability.
IMO if using your LTD like this then you need to be very careful to make sure you keep a record of all transactions. You wouldn't want to be investigated and there's a gap.
Crypto currencies could potentially be used as a method of extracting cash from a LTD as a 'loss' so you'd need to be able to demonstrate that's not what you've done.
I would also argue that given their volatility it's a gamble rather than an investment (although I have done quite nicely recently) so not an appropriate use of company funds (fiduciary responsibility yada yada). So I would do this as a personal gamble/investment.

[saptastic]

Worth asking your accountant?

Be interested to hear what any accountants on this forum have to say about this as I would assume that many are not up to speed on crypto...but I maybe wrong

[Maslins]

@saptastic I imagine we're as up to speed as any others (ie not very...but a handful of clients have started dabbling). My understanding is at least for the time being it's considered a capital gain type asset. Generally speaking this means you'd want to own them personally, as that way you'd get your annual exemption and then suffer 10%-20% on any capital gains (not qualifying for entrepreneurs relief).

The general view that you should keep investment assets out of your contracting Ltd Co remains true as far as I'm concerned. Ignoring risks to change of status of company from trading to investment, you'd suffer corporation tax on any gains on disposal, then still have the funds in the company meaning personal tax when withdrawn.

[saptastic]

Thanks @Maslins - really useful. Will be interesting to also see if crypto becomes more mainstream.

[northernladuk]

Thanks @Maslins - really useful. Will be interesting to also see if crypto becomes more mainstream.

His statement about keeping investments assets would still stand whether they do or don't surely?