Setting up a company for PA

caldi9

grey_gym_sock wrote: »

you mean the dividend and CGT allowances are maxed out?

then just buy low-yielding equities, like a US tracker or japan tracker, in a taxable account, and hold them indefinitely. some tax on dividends, but not much because low yield. no CGT if you don't sell.

I pick stocks on a single name basis based on fundamental work, so that would not work.

caldi9

jimjames wrote: »

So lose 19% tax instead? That doesn't make sense...

I heard that there are vehicles in Luxembourg, have to reach out to tax advisers for this one...

Dox

Maybe get some professional advice? You sound as if you aren't sure of your ground, so your capital could be at risk in more ways than one.

grey_gym_sock

so you're mostly paying CGT? at 20% max, just pay the tax. that's an incredibly low rate.

i'm not joking. ... suppose you can find some overseas vehicle in which you can make capital gains on shares without paying any tax. so your gains compound, without repeatedly losing 20% . after some years or decades, you want to spend some of this money. you're happy to pay 20% CGT once, on your overall gains, when you take the money out. but oh dear, perhaps CGT has been aligned to income tax (as it has been sometimes in the past), and you now have to pay at least 40% .

it might be different if you have millions to invest which doesn't fit into tax wrappers and if you will either never spend it or become a tax exile. though IMHO, in that case, again just pay the tax, though for slightly different reasons (viz. you can afford to, and that is what upstanding citizens do).