Realised gains

[broomstick]

Having traded as a Limited Company since 1997, I have now taken a Staff position with a company on a PAYE basis. This will be the first year that my company will not make any trading profits, although I have a number of investments in small AIM companies, until this year showing a capital loss. Much to my delight one of the shares has gone ballistic and I am now sitting with a huge capital gain although not realised.

Aware of all the disadvantages of investing this way and possibility of the company being treated as a CIC - but would appreciate any advice on what to do now the stable door is open and the horse has bolted!! I am looking at around £550,000 in the company with a 65% gain.

My initial question to the board would be can I utilise realised gains in much the same way as trading profits and transfer £40,000 into my SIPP as a Directors Contribution????

Many thanks in advance on ant replies

[pawncob]

Who made the gain? You or the LTD?

[broomstick]

It was the Limited Company that made the gain. Thanks.

[pawncob]

If the gains are realised then they're the same as any other profits, so assuming the sum is paid to you as income, it should qualify.

[bd6759]

Since there is a single rate if CT now, being a closed investment compoany does not have the downside it used to have.

[broomstick]

Many thanks for the replies pawncob and bd6759 and apologies for a tardy late response back.

Hopefully I can transfer a Directors Contribution this year to my SIPP and also consider closing my company down

Appreciated

[AdamS93]

Careful with the pension contrition. If it is a personal pension plan it will have to be withdrawn as a salary/dividend first before you pay it into the pension. Also, if this is the case you need to make sure you have enough 'relevant earnings'.

With the sums of money you are talking about, I would go an see an accountant/tax adviser as there could be potential to save/lose thousands in paying necessary tax...