Share Investment From Ltd Co

[JJUXI]

Yes, I opened a ltd co investment account a few years ago due to similar reasons, particularly losing to inflation and ever increasing personal tax / loss of reliefs. My accountant was not keen but couldn't provide any reasonable alternative.

After messing around with trading, I invested exclusively in low fee global index trackers and left it to churn. As far as I am aware, corp tax applies on disposals, losses are deductible and dividends received are generally not taxed, to avoid double taxation. I think CIC is only a factor if your trading profits become a very significant proportion of your ltd co turnover.

The downsides - to investing or holding large reserves in general - are:

- Effective lock-in period, i.e. long term bear market. Suppose a quick 50% drop and a recovery taking 10+ years.

- A raid on your funds via IR35 retro-action or perhaps a new tax on retained reserves (recently touted)

- Hitting higher rates of personal tax on eventual liquidation


It has worked for me so far due to market conditions and a gradual draw-down strategy. However, it is worth an exhaustive look at legal personal tax breaks, while they still exist. As always, DYOR.

[barrydidit]

Scooter says there is a correction coming so I'm selling everything and keeping cash under the bed.

You should be selling the bed too and renting one from Brighthouse till we hear from Scooter it's safe to start buying again.

[vwdan]

Oddly enough that's probably the best investment advice that's been posted on here in a long time.

B is for Brexit!

[northernladuk]

Amateur - my Plan B is a bag of uncut blood diamonds under the floorboards.

Oddly enough that's probably the best investment advice that's been posted on here in a long time.

[vwdan]

Scooter says there is a correction coming so I'm selling everything and keeping cash under the bed.

Amateur - my Plan B is a bag of uncut blood diamonds under the floorboards. That and Bitcoin.

[northernladuk]

I can't tell if this is sarcasm or not..

It's true. See....

https://forums.contractoruk.com/showthread.php?t=126569

[Syd]

Scooter says there is a correction coming so I'm selling everything and keeping cash under the bed.

I can't tell if this is sarcasm or not..

[northernladuk]

In bullion, of course?

Hell no. Not after dim prawns gold investing advice.

[BR14]

Scooter says there is a correction coming so I'm selling everything and keeping cash under the bed.

In bullion, of course?

[northernladuk]

Scooter says there is a correction coming so I'm selling everything and keeping cash under the bed.

[vwdan]

I know this topic pops up every now and again, with the oft quoted advice to just draw dividends and do it manually blah blah.

Of course, I know better than everyone else ever () and would like to clarify the position around this.

My warchest is big enough now that I'd be comfortable investing a proportion of it - I'm concerned that, even in 'high' interest savings accounts I'm probably losing money in real terms. I don't want to withdraw it as I'll pay skyhigh tax and the whole point is that it sits in MyCo until I personally need it to top up my contract income.

Plan would be fairly safe tracker funds for most of it (It being what I'm willing to invest) and maybe some play investments around it.

So does anyone do investments via their Ltd Co? Is there *really* a chance I get classed as a CIC?

What's the deal with tax - is it as easy as losses are tax deductible and gains at 20%? Has anyone sat down and ran any generic numbers vs DIY via Dividends?