Reply to: tax avoidance and evasion no longer exist

[DimPrawn]

Property trading is not the same as getting rent income from owned properties wrapped into an Ltd.

They will become deemed "disguised" property investment companies.

Some dim bint heading up HMR&C will create IR69 and fook them over. Then she will become a Baroness and go the house of lords for a life of free gravy.

[BrilloPad]

It doesn't matter... for any value of X AtW's comment is "X will be very heavily taxed very soon"

The latest was X = condoms. Something he will never have use for.

[diseasex]

Now that's very dangerous - that kind of companies will be heavily taxed for sure, very very soon

Too much doom and gloom in your vision IMO. There will always be niches, ways to make income etc. That won't change. You don't need to buy rental property, you could build one yourself etc. All sorts of investment options available once you've accumulated enough.

I'll keep on investing until it won't matter anymore

[vetran]

It doesn't matter... for any value of X AtW's comment is "X will be very heavily taxed very soon"

someone has to pay for the squirrel bridges.

[d000hg]

why?

Don't property trading companies already exist?

It doesn't matter... for any value of X AtW's comment is "X will be very heavily taxed very soon"

[AtW]

Don't property trading companies already exist?

Property trading is not the same as getting rent income from owned properties wrapped into an Ltd.

[ChimpMaster]

Now that's very dangerous - that kind of companies will be heavily taxed for sure, very very soon

why?

Don't property trading companies already exist?

[AtW]

This has always been my medium/long term objective, but if it didn't work out then I would retain funds in the Ltd and buy assets (property) to generate income.

Now that's very dangerous - that kind of companies will be heavily taxed for sure, very very soon

[ChimpMaster]

You're correct. The dividend doesn't apply to investments held within an ISA nor does capital gains tax, or indeed any other income tax.

Still worth putting as much as you can in and reinvest the dividends to build it up.

I wouldn't rely on the Entrepreneur's Relief being available to PSC's in the long term.

This has always been my medium/long term objective, but if it didn't work out then I would retain funds in the Ltd and buy assets (property) to generate income.

[AtW]

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

Nice idea, only problem is that if company become non-trading it could get exposed to some punitive taxation measures in the near future.

[Waldorf]

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.

You're correct. The dividend doesn't apply to investments held within an ISA nor does capital gains tax, or indeed any other income tax.

Still worth putting as much as you can in and reinvest the dividends to build it up.

I wouldn't rely on the Entrepreneur's Relief being available to PSC's in the long term.

[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.

[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

[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]

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