Investing ltd company funds

[tulipz]

Hi all,
I am considering investing in mutual funds in developing markets through my ltd company. Is anyone here doing it already? Appreciate any advice on this...its painful to see that the money is just sitting there while I slog my ass off...

-Tulipz..

(looks like 'tulip' has a different meaning altogether on this forum! I'll change my username soon!)

[northernladuk]

You might not get much of a response to this as it has been asked endless times and have discussed options from buying flats, buying gold right through to buying wine ane artwork.

The bottom line is nothing ever comes up that is worth doing due to the tax implications on the investment (remember it is your company investing not you so will incur tax on profits etc)

Try doing a search to find some of the earlier threads where these issues were discussed.

[lukemg]

Can't you SIPP a big chunk, ISA another 10200 and loan 5k for the year (HAS to be paid back though) ?

[Starkraving]

I've just applied for a trading account with SelfTrade who allow Ltd Co. accounts.

I understand that you are taxed on any profits, but there again you are not paying any income tax until you take the money out of the company. Also, I presume they are not profits until you actually sell your shares.

[moorfield]

IIRC dividend income on ltdco investments is not (corp) taxable.

I considered briefly buying high yield shares and/or prefs inside a ltco to generate said income but realistically this is only workable for large sums and a long term buy and hold perspective.

Like others have suggested, I would SIPP it or (income) split it, otherwise it will likely cause more admin and tax problems in the long run.