Buying stocks & shares with my LTD company?

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?

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

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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.

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

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

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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.

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.

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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.