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Online Share Trading

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tax efficient investment

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Not applicable
Help needed - I earn the bulk of my income through a PTY in which I consult to a company. I am trying to figure out how I can make investments in the name of the PTY that will be treated as an expense. I was told this is possible, anyone got any ideas?
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6 REPLIES 6
DEP
Super Contributor
Tax efficient?.. you will pay Company CGT (gains)/ Company tax (interest etc) on profit. No free lunch!
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Not applicable
14% CGT is a lot better than 40% on personal earnings. I wasn't looking to avoid tax, I just want to keep it efficient.
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BC02
Super Contributor
tax always comes down to 2 routes, 1 is Capital Gains or 2 Revenue Tax. If you are going to deduct losses and costs the profits will be taxed at company rates (28%), if you dont want to be taxed @ 28% - i.e. its CGT - then you have to hold on to the investments for 5 years and you cant deduct most of the costs.

If your thinking about trading through the company rather than your own name, the main difference is:
Private: Profits will be taxed @ 40% (depending on your tax bracket), Losses will be ringfenced if encumbered continuously.
Company: Profits taxed @ 28%, but you will pay DWT when trying to get that money out
Any scheme more complex rather ask a tax consultant.
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DEP
Super Contributor
Well, personal CGT is less than company CGT.
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doomsdayza
Super Contributor
if you want to invest in staplers and pencils sure... not sure where they got that idea from.
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partridge
Super Contributor
Read BC 02'S LAST line.
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