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Investing in Fund through limited company

What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation
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  • dunstonh
    dunstonh Posts: 118,818 Forumite
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    What tax wrapper are you using?

    Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

    I don't want to invest as pension.
    Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • wmb194
    wmb194 Posts: 4,370 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 12 January 2024 at 3:30PM
    AAZ said:
    What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation
    I don't know about the best but AJ Bell offers dealing accounts to companies.

    https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust
  • AAZ
    AAZ Posts: 109 Forumite
    Third Anniversary 10 Posts Name Dropper
    wmb194 said:
    AAZ said:
    What is the best platform to invest money from limited company into funds and shares. I have some money in my limited company which I want to invest for long term gain. I don't want to invest as pension. Grateful for any recommendation
    I don't know about the best but AJ Bell offers dealing accounts to companies.

    https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust
    Many thanks I will have a look, thanks
  • AAZ
    AAZ Posts: 109 Forumite
    Third Anniversary 10 Posts Name Dropper
    dunstonh said:
    What tax wrapper are you using?

    Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

    I don't want to invest as pension.
    Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

    I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 
  • dunstonh
    dunstonh Posts: 118,818 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    edited 12 January 2024 at 4:06PM
    AAZ said:
    dunstonh said:
    What tax wrapper are you using?

    Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

    I don't want to invest as pension.
    Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

    I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 
    The investment doesn't matter both unwrapped and Offshore bond can invest in the same way (as can pensions).    Tax wrapper is the second part of the decision making method.

    If the investment is large, then offshore bond is likely to be better than unwrapped.  Offshore bond allows you to control when the company is to pay taxation on the investments.   unwrapped does not.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AAZ
    AAZ Posts: 109 Forumite
    Third Anniversary 10 Posts Name Dropper
    dunstonh said:
    AAZ said:
    dunstonh said:
    What tax wrapper are you using?

    Limited companies tend to use either offshore bond or unwrapped.   Offshore bond is usually best due to increased control on taxation but if its only a small amount, then it wouldn't make much difference.

    I don't want to invest as pension.
    Obviously, from an individual point of view, if the money was to end up being yours rather than the company, the pension tax wrapper trumps all other options.  However, if the money is needed by the company later, then the pension wrapper would not be any good.

    I am not using any or don't know to use any it would have been just simply DIY investing in passive vanguard ETF 
    The investment doesn't matter both unwrapped and Offshore bond can invest in the same way (as can pensions).    Tax wrapper is the second part of the decision making method.

    If the investment is large, then offshore bond is likely to be better than unwrapped.  Offshore bond allows you to control when the company is to pay taxation on the investments.   unwrapped does not.
    This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time
  • Is there a reason you want to invest it within the ltd company rather than take it out the ltd company and then invest it? 

    The latter means paying tax up front, but providing it goes into an ISA no further tax in future. 


  • CliveOfIndia
    CliveOfIndia Posts: 2,289 Forumite
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    AAZ said:

    This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

    At the risk of sounding like a "cop-out" reply ... it may be worth asking your accountant for advice ?  If you don't currently have one, it may be worth considering.
    I used to run a LTD company many years ago.  Started out going the DIY route for tax, eventually got an accountant, and was glad I did in the end.  Sure, it's an added expense, though usually not a huge amount, and they can be worth their weight in gold.  They know the rules and regulations, and can usually offer excellent advice on such matters - as well as making the dreaded Tax and VAT returns so much simpler :)
  • dunstonh
    dunstonh Posts: 118,818 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Is there a reason you want to invest it within the ltd company rather than take it out the ltd company and then invest it? 

    The latter means paying tax up front, but providing it goes into an ISA no further tax in future. 


    Pension will beat ISA in that scenario.

    Limited companies can treat pension contributions as a business expense which reduces the corporation tax bill and avoids income tax, dividend tax and NI.   
    For the vast majority of shareholding directors, the pension wrapper is miles ahead of the alternatives.

    This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time
    With that amount, you would do it unwrapped.    However, if this money is planned to be drawn later (i.e. 58+), then the pension wrapper would be best.  

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AAZ
    AAZ Posts: 109 Forumite
    Third Anniversary 10 Posts Name Dropper
    AAZ said:

    This is whole new concept to me , how best I can explore this option. I will be investing 2 to 3k per month over log period of time

    At the risk of sounding like a "cop-out" reply ... it may be worth asking your accountant for advice ?  If you don't currently have one, it may be worth considering.
    I used to run a LTD company many years ago.  Started out going the DIY route for tax, eventually got an accountant, and was glad I did in the end.  Sure, it's an added expense, though usually not a huge amount, and they can be worth their weight in gold.  They know the rules and regulations, and can usually offer excellent advice on such matters - as well as making the dreaded Tax and VAT returns so much simpler :)
    I have accountant to do my business account but I don't think they will advice me on investment 
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