Buying Shares with Company Money

**northernladuk** · 27 September 2023, 13:14

Did you ask your accountant in the end?

**Paddy** · 27 September 2023, 17:41

Originally posted by xpwebb View Post

Is there any advantage to buying shares (perhaps FTSE or AIM) with company money (rather than personal), in terms of tax avoidance? I guess CGT is payable on gains but what about losses? Are they just 'written off'.

help please!

Read your company articles of association, (normally any activity to make money )

**GJABS** · 1 October 2023, 10:25

I looked into this many years ago, and no there is no benefit in buying shares in one's Ltd company. You pay just as much tax as personally, if not more, and you make the administration of the company more complex.
Fyi for personal capital gains tax you can claim losses against present and future gains up to 3 years into the future I believe...(which will come in handy for me I think, because I have some oil shares that have taken a hammering recently lol)

**Smoggy** · 1 October 2023, 11:17

There may be situations where there is an advantage but I think only if you're investing for income rather than growth. Profits from growth in share price are taxed at corporation tax levels which is higher than personal CGT and you have no allowances. However dividends paid to your co are not taxed as they come from taxed profits. Of course anything you then take from your co you need to pay dividend tax on.

**DoctorStrangelove** · 1 October 2023, 14:29

Fine zombie thread resurrection there nluk.

.

**courtg9000** · 1 October 2023, 15:56

I did this way back BUT
1) Thats the direction I wanted the company to go in anyway. The business model was not going to be purely bum on chair day rate contracting (in fact the less the better) and it suited the optics for the business as well as the business itself.
2) There used to be a "reason" ahem to buy Vodafone shares the day before the company year end and flog them a few days later.
3) Unless there is a business reason for holding the shares you are probably best off holding them personally.
4) Please get a decent accountant (not a contractor special) and consult them!

Buying Shares with Company Money