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Where Taxpayers and Advisers Meet

Investing from own limited company

ChristopherL
Posts:24
Joined:Wed Aug 06, 2008 1:53 pm
Investing from own limited company

Postby ChristopherL » Tue Apr 28, 2009 3:51 pm

I am interested in finding out about investing from one man band limited companies.

Example, Mr X has income of £100k per year, he pays himself minimum wage salary and then dividends for the rest of the income.

Rather than taking all this money out the company, can investments be made from the company income, e.g, to buy gold and silver? Is there options to do this so to buy gold from the company and therefore not pay tax on distributions to me as i wont be receiving the money as a dividend.

I am just trying to find out a way of going about this, if it is possible and/or beneficial.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Investing from own limited company

Postby pawncob » Wed Apr 29, 2009 8:36 pm

The company would still pay CT on the £100k profit, so where's the benefit?
With a pinch of salt take what I say, but don't exceed your RDA

cranleys
Posts:567
Joined:Wed Aug 06, 2008 3:13 pm
Location:Basingstoke
Contact:

Re: Investing from own limited company

Postby cranleys » Thu Apr 30, 2009 1:08 am

The company would still pay CT on the £100k profit, so where's the benefit?
Correct, the investment is not seen as a taxable cost but instead would be capitalised and held on the balance sheet.

Investments should generally be made in personal names but very often we will organise things in either trusts or family partnerships for maximum IHT benefit or CGT benefit.

Not everyone will see or understand trusts and partnerships but it should be clear from the CGT rates than personal invesment is better than investing in a company.

Regards.

Colin Davison
Cranleys Chartered Accountants
01256 830000 or 07766 714000.


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