tax avoidance and evasion no longer exist

[northernladyuk]

I was filling my isa to the max every year. but now with dividend tax rise etc that might not be the best option anymore.
Retaining funds in the LTD is the king.
Especially with lower CT coming next years

To do this properly you need to offset profits against IP licensed from your offshore company.

[ChimpMaster]

They'd be stupid not to. The mega-rich might not particularly benefit but you're also confusing wealth and income in what I'm saying. A family who has £40k+ to put in long-term savings each year is very affluent.

Yes perhaps if they're middle-class high earners then I see your point.

The rich/wealthy people I know (and who are out of my league) invest their money themselves, mainly on property ventures or businesses, or they spend it on improving their standard of living.

[AtW]

Retaining funds in the LTD is the king.

And then what?

Only matter of time before they change capital distribution rules to prevent cash being split as capital gains, they've already done it for companies being sold, no reason why they would not do it for companies being liquidated.

[northernladyuk]

And then what?

Only matter of time before they change capital distribution rules to prevent cash being split as capital gains, they've already done it for companies being sold, no reason why they would not do it for companies being liquidated.

Re-domicile to another EU jurisdiction... oh hang on.

[d000hg]

Yes perhaps if they're middle-class high earners then I see your point.

The rich/wealthy people I know (and who are out of my league) invest their money themselves, mainly on property ventures or businesses, or they spend it on improving their standard of living.

Have to remember many of us are pretty wealthy. There's always people richer of course. However I imagine even proper rich folk probably make use of the 'tiny' ISA allowance because it'd be foolish not to... over the decades that's really going to mount up.

[diseasex]

And then what?

Only matter of time before they change capital distribution rules to prevent cash being split as capital gains, they've already done it for companies being sold, no reason why they would not do it for companies being liquidated.

Who said I'd ever liquidate the company? Asset stored in it can provide income till the rest of your life with little admin

[diseasex]

To do this properly you need to offset profits against IP licensed from your offshore company.

There are ways to avoid tax, but with 17% I can bite the bullet and grow wealth wrapped in LTD

[northernladyuk]

There are ways to avoid tax, but with 17% I can bite the bullet and grow wealth wrapped in LTD

I guess in your case 17% of not much is sod all.

[diseasex]

I guess in your case 17% of not much is sod all.

Fill the ISA sub higher rate. Keep the rest in LTD. That's what I do. Will do some math for the next year if ISA is still a good option given dividend tax hike. Because that 7.5%, you would have to give away to the taxman, over longer period would grow exponentially

[hugebrain]

I was filling my isa to the max every year. but now with dividend tax rise etc that might not be the best option anymore.
Retaining funds in the LTD is the king.
Especially with lower CT coming next years

I don't get it.

I thought that the 7.5% dividend tax didn't apply to ISAs, and lower CT won't help retained funds since you've already paid it at the prevailing rate?

Of course the dividend tax will cause the stock market to plummet, so you could shift to a buy-to-let and save tax.