I did this before. I was a contractor. My accountant warned me that if my investment profit exceeds my company’s profit it will be classified as close investment company (CIC).
- you’ll lose the ability to claim Entrepreneurs relief
- you’ll pay more tax. At that time it was 28%.
I made a bit of profit and paid Corp tax against it. I think it was 21% at that time. I shut down the brokerage account as I wasn’t too confident that I have the full blessing of my accountant.
My accountant is BKL if you want to ask them.
That was a while ago (4-5 years ago) the rules may have changed now?
These days I just use company money to contribute as much as I can into my SIPP account. It’s more tax efficient imo. Only problem is you won’t be able to access it til mid 50s. (I’m talking about my experience as a contractor owning a ltd company).