Buying stocks & shares with my LTD company?


(Louis emina) #1

Hey guys maybe I should be asking my accountant this question but I thought I’d throw it out there,
I have a personal freetrade account but could I also open an account for my limited company and could it invest in long term stocks for dividends with its profits as a separate entity? Instead of money just sitting in a business account looking pretty can I make that money work?


#2

I think this is an excellent idea. A market Freetrade ought to consider. I hope this is a real possibility. If not now, at least in the near future.


(Emma) #3

At the moment it has to be a personal bank account that is linked so it’s not possible currently


(Louis emina) #4

I really hope so , can’t imagine it being hard to implement business accounts. Hope they sort it so it’s possible in the near future.


#5

It may not be possible at the moment but I’m sure it will be at some point. Freetrade it’s just beginning it’s journey with individual accounts, and gladly so :smile:


(Vladislav Kozub) #6

You can always suggest this in the “Ideas” section and see what the potential demand will be :wink:


#7

Guess it’s harder to do the anti-money laundering checks with business accounts


(Aris David) #8

I’ve done this couple of years ago, but only a small amount of Investments as didn’t want to risk my company turning into a closed-end fund (I forgot what the rules are for that).

You’ll pay corporation tax on profits made.

I stopped now because compliance working in finance.


#9

I looked into this as well. The disadvantages include paying Corp tax on profits, no CGT allowance and whatever disadvantages being a closed fund brings to your non investment business activities.

I concluded it’s not worth it until your’re able to max out your pension, ISA and personal CGT allowance each year. I’d love to here any other opinions though.


(Ben) #10

Then you still have to get profits out somehow so more tax… dividends over 2k attract 7.5% for basic rate tax payers and 32.5% for higher rates.

No entrepreneurs relief on sale of company either if it makes up over 20% of income.