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Investing in Shares as a Ltd company?

Discussion in 'Business & Tax Advice' started by fujing, Apr 18, 2012.

  1. fujing

    fujing Junior Member

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    If I have a ltd company in the UK and I have cash reserves that I want to make better use it. Is it possible to set up a stocks and shares account under the company name and invest the cash reserves of the company into something like the ftse 100 or AIM markets?

    I already invest personally in stock markets but would like to know if investing company profits is possible.

    any insight much appreciated :)
     
  2. Hunwarrior

    Hunwarrior Jr. VIP Jr. VIP Premium Member

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    why not asking ur accountant?
     
  3. azizsalim

    azizsalim BANNED BANNED

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    I would like to learn more about stock market before investing some money there but i think, I need a stick broker for better guidance.
     
  4. bitencrypt

    bitencrypt BANNED BANNED

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    yes, you can do that>>> contractoruk(.)com/money/how_to_invest_my_companys_leftover_cash(.)html
     
    Last edited: Jan 5, 2013
  5. GauravJ

    GauravJ Power Member

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    Yes, Promoter of a corporation and It's Corporation are treated as different entities and also will taxed accordingly
    and for investing corporations surplus you will require a separate account in the name of company itself.

    By the way Investing in stocks is risky don't do so unless you have expertise in selecting them and especially when
    these are part of your working capital. For you Investing in bonds such as sovereign bonds, municipal bonds or even some bluechip bonds are best advisable or invest partly in bonds and partly in shares as per your risk appetite.

     
  6. Panther28

    Panther28 Elite Member

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    yes, all ftse100 companies do exactly that too, the amount you buy will go into your assets column, and obviously if they loose value, you can offset for tax purposes, but your dividends are still subject to tax too, what i want to know though is that if you re-invest your dividends straight back in, would you still pay tax on them between this happening?