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Investing in Fund through limited company

AAZ
Posts: 109 Forumite

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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Comments
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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.0 -
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
https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust
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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
https://www.ajbell.co.uk/faq/it-possible-open-dealing-account-name-trust0 -
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.0 -
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.
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.0 -
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.
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.0 -
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.
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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 timeAt 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 simpler0 -
NoviceInvestor1 said: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.
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 timeWith 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.2 -
CliveOfIndia said: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 timeAt 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 simpler0
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