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Where Taxpayers and Advisers Meet

Invest in stocks as an individual or as Ltd?

Jack Warwick
Posts:1
Joined:Fri Dec 27, 2019 2:24 am
Invest in stocks as an individual or as Ltd?

Postby Jack Warwick » Fri Dec 27, 2019 3:17 am

Hi,

Is it legal to trade stocks (mostly on the US stock market) as an Ltd?

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

Re: Invest in stocks as an individual or as Ltd?

Postby pawncob » Fri Jan 03, 2020 10:39 pm

Yes. but why would you?
Tax disadvantageous.
With a pinch of salt take what I say, but don't exceed your RDA

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: Invest in stocks as an individual or as Ltd?

Postby robbob » Sat Jan 04, 2020 11:00 am

Tax disadvantageous.
I am guessing if the cash is already there and extracting that cash to oneself would result in 32.5% tax charge then it may not be completely illogical from a tax view holding some decent yielding stocks if the alternative is to be stuck with bank deposit rates- i would say if you have the option of setting up a sipp and contributing to that via the whilst securing tax relief via your company for contributions made that route can be highly tax efficient - albeit sipp's have their own downsides that are not really tax related (annual costs and you need to wait till your bones start creaking before you can get your cash are two that spring to mind) - hmmmm my bones are starting to creak this morning there must be snow on the way meethinks.


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