Taxation of Investment company - confused.... - Contractor UK Bulletin Board

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Martin at NixonWilliams replied

24 March 2014, 08:53
Originally posted by elster View Post

1. how is the company classified and what tax rate would apply to profits? small comp rate or full 26% rate?

The 26% rate expired on 31st March 12. The main rate of CT is currently 23% but is being reduced to 21% as of next month.

I'm not entirely sure what it is that you are doing but I would advise speaking with an accountant that has experience dealing with the kind of set up you have.

I hope this helps.

Martin
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Bunk replied

23 March 2014, 16:45
Originally posted by ASB View Post

Or fca regulation, or the dipfa principals requirement or possibly a number of others depending on exactly what they are doing.

though im sure they could arrange a meet at visiting times with mr upton who I am sure can offer some hints on avoiding all that pesky regulation and the ongoing consequences.

Good idea. Also, I believe Mr Madoff could offer some advice on paying out returns to clients.
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ASB replied

23 March 2014, 16:04
Originally posted by northernladuk View Post

And you don't have an accountant?

Or fca regulation, or the dipfa principals requirement or possibly a number of others depending on exactly what they are doing.

though im sure they could arrange a meet at visiting times with mr upton who I am sure can offer some hints on avoiding all that pesky regulation and the ongoing consequences.
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northernladuk replied

23 March 2014, 15:13
And you don't have an accountant?
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ASB replied

22 March 2014, 23:32
From the your description the profits will be taxed at the rate appropriate to the level of them.

as for client money etc all depends on how they are handled what exactly you are doing with them etc.

of course you will need appropriate licences etc to avoid running an unauthorised investment scheme.
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elster started a topic Taxation of Investment company - confused....

22 March 2014, 19:41
Taxation of Investment company - confused....

Hi All,
I am hoping someone is able to clarify this one for me as I am confused over it ...

Scenario

Company A is setup to:-
1. manage client money and invest it various trading activities and share in a profit share arrangement
2. property build/development and sale (never rentals)

Questions

1. how is the company classified and what tax rate would apply to profits? small comp rate or full 26% rate?
2. are client payments under profit share allowable as an expense and then corp tax is calculated or are company profits calculated and client returns are distributed post tax?

confused...

thks
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