Can a limited company invest its profits by spreadbetting?

ajm123

Wondered if a small company or its owners can 'invest' its profits by spreadbetting?

For individuals, this is a tax free form of 'share-trading' - if a company can do the same, can this potential 'tax free' form of profit be drawn from the company by its directors without them becoming liable to a tax charge?

Any advice would be welcome.

WHA

I suppose the company can do whatever it wants, subject to its Memorandum and whatever rules the scheme provider may impose.

Whether the profits are tax free in the company is very doubtful. There are suggestions spread betting may be tax free for an individual, as it may be a hobby, but a ltd co can't have a hobby - it is a business, so unless you have a specific exemption under corporation tax rules, profits would be taxable.

The payment of the profits to the directors/shareholders would have no tax exemptions and would be subject to tax and/or NIC just like any other payments.