Company Share Dealing

**northernladuk** · 3 November 2011, 10:36

Have a look at this link that might make you re-think..

http://forums.contractoruk.com/busin...g-account.html

Also to find more information on something that has been discussed quite a bit use google site: option. Link is here for you..

Share Dealing on Contractor UK from google

Might also be worth not putting your personal details in your mails. Amazing what you can find with a bit of digging.

**brigzy** · 3 November 2011, 10:53

Thanks

Originally posted by northernladuk View Post

Have a look at this link that might make you re-think..

http://forums.contractoruk.com/busin...g-account.html

Also to find more information on something that has been discussed quite a bit use google site: option. Link is here for you..

Share Dealing on Contractor UK from google

Might also be worth not putting your personal details in your mails. Amazing what you can find with a bit of digging.

Many thanks for the links - although I havn't yet spotted the answers to the specific questions - will keep searching.

**css_jay99** · 3 November 2011, 11:41

i am interewsted in this as well but cant find any reason why it cant be done

afterall the share dealing account is not a personal one ...

**ASB** · 3 November 2011, 11:50

Originally posted by brigzy View Post

Is it correct that the profits would be rolled up with the rest of company's profits and taxed @ 21%?

Sort of.

In terms of any dividends received then these will not generally be chargeable to corporation tax, i.e. they will be excluded from the CT calculation. [If the payer is not a UK company and there is not an appropriate DTA in place then they will still be chargeable. In practice this is only likely to be relevant if the payer is in a tax haven].

http://www.slaughterandmay.com/media..._dividends.pdf

In terms of profits from sales then this is capital gains and will be chargeable in accordance with the appropriate capital gains regime for corporates. This means they get charged to corporation tax and currently there is no allowance (unlike an individual) - thus ALL gains from share sales will attract CT.

In terms of losses from sales then these are firstly used to offset any gains (i.e. tax is only payable on the net gains - losses). In the event that there is an overall loss then this cannot be offset against trading income. However it can be carried forward to be offset against future capital gains.

HM Revenue & Customs: Chargeable gains and Corporation Tax

You might also find this thread useful:

http://forums.contractoruk.com/busin...nt-advice.html

There is also the risk that if your investments are substantial and your trading declines, or it becomes solely an investment holding vehicle then the company could become classed as a close investment company and lose the entitlement to lower rate corporation tax (26%).

**Jeebo72** · 3 November 2011, 13:24

Originally posted by brigzy View Post

Hello,

I have been wondering for a while what to do with excess company funds, especially as interest rates are 0% on my HSBC company account.

I have done a bit of digging and finally found a share dealing account suitable for limited companies.

https://www.barclaysstockbrokers.co....g-Account.aspx

Has anyone else had any experience of company share dealing?

Is it correct that the profits would be rolled up with the rest of company's profits and taxed @ 21%?

What about any losses?

Regards
Richard

[email protected]

I use barclays for company share dealing. tax depends on how much you make and how much of your company profit is through sharedealing. I suspect it wont be an issue for you tho'. Just ask your accountant. PS if you use SJD or similar it's a nightmare recording these things. So either dont bother or move accountant!

Also can you write off losses, however they have to be proper loses, ie sold shares. Not that shares are just devalued by 50% etc.

**brigzy** · 3 November 2011, 13:46

ZOPA

Many thanks for these very informative posts.

Thinking seriously around the the idea of accumulating profits within my company.
I understand that I can draw dividends then in future years when I may not have any income.
Presumably I would be able to do this without paying income tax - perhaps when out of work or when I retire.

ZOPA Anyone?
I have also opened a business account with ZOPA.
This allows me to lend out company money - average rate of return of about 6%-11%.
(You have to send them a copy of your Certifcate of Incorportation and declare you are not a money lending company).

I think this will be classed as interest?
I am not sure - anyone?

Richard

**brigzy** · 3 November 2011, 14:07

Originally posted by ASB View Post

Sort of...lose the entitlement to lower rate corporation tax (26%).

@ASB
Can I just check - shouldn't it be 20% (edit: small profit rate) for 2011 ?
HM Revenue & Customs: Corporation Tax rates

Or is there a different rate for CGT?

Many thanks again
Richard

**ASB** · 3 November 2011, 14:41

Originally posted by brigzy View Post

@ASB
Can I just check - shouldn't it be 20% (edit: small profit rate) for 2011 ?
HM Revenue & Customs: Corporation Tax rates

Or is there a different rate for CGT?

Many thanks again
Richard

I didn't put that very well. If you are not a close investment company then you will pay at the small companies rate i.e. 20% from 1/4/11. If you are a close investment company then you will pay at the main rate - i.e. 26% at the moment.

It is unlikely that you will become a close investment company, but it is something to be aware of.

Edit: referring to your earlier post. Yes you can draw dividends from the comapnys retained profits with no further tax to pay - subject to current regime, i.e up to approx 43k (total income from all source). Excess above this has further tax to pay.

If you are planning to hold lots of investment into the company until retirement this will increase the risk of it being a close investment company - at least at that point. If it is not trading and is only holding investments it's not really likely to be anything else and you will be categorised as such and pay the main rate of ct (26% currently). Of course this is likely to have changed in some way by then but you can probably see the principle.

If your strategy is to do the above (or some variation on it) have you considered a SIPP funded primarily by corporate contributions, if you have and rejected it then why rejecting it (money tied up for too long could be a very good reason).

**brigzy** · 3 November 2011, 15:13

SIPP

Many thanks for your reply.

I do also have a SIPP which I am contributing to - but locking it all away worries me yes - as I it won't help me if I am out of work or sick or something for a long while.

Company Share Dealing