Trading LTD offset earnings to holding company / separate investment company

[curiousman]

Guys,

I am currently piling up a significant amount in my main contracting ltd and looking to offshoot this into a separate ltd with SIC codes for stock dealing and an SPV Ltd for property acquisitions.
My online accountant (named after a certain jungle animal) has advised against using a holding company as I would be not entitled to entrepreneurs relief which could be significant.
It just seems a bit strange to have 3 separate companies, each powered off of inter company loans from my main trading company. Has anyone established such a setup ?
Which setup is the most appealing when dealing with HMRC ?

Any accountants recommended, as I believe this may be beyond the skill set of contractor specialist accountants.

[northernladuk]

You maxed out your pension payments?

[b0redom]

Completely different investment types. Pensions are untouchable until you’re 55. OP might need to liquidate some of his/her investments before that.

[northernladuk]

Completely different investment types. Pensions are untouchable until you’re 55. OP might need to liquidate some of his/her investments before that.

Different? Yes but isn't the best thing to do with investments is spread them across different types? We've had a few of these types of questions and pension haven't been considered in most of them. Just an option I thought the OP could consider if he hasn't already.

[curiousman]

Thanks, a certain amount is already allocated to pensions. This is setup for more immediate returns, I'm still young !

[BlasterBates]

I would see an accountant so he can calculate any advantages. There are two problems, firstly transferring the funds from one company to another and secondly that you need to pay this out and that will be taxable, so your investment company will be paying capital gains and dividend taxes, and then you pay a further dividend tax on top. There maybe some possibility to run it as a fund.

I think either you invest the money as it is generated via your Ltd in the Ltd company and you pay a final tax when you liquidate the company or you simply invest privately maxing out your pension allowance. Probably the latter is the best way to do this.

I don't think you'll find any magic trick to save lots of tax otherwise everyone would invest using holding companies.