The Lemon Fool

I have some funds in a limited company which I'd like to invest in shares, without extracting from the company (and incurring the income tax on the dividends).

Has anyone done this?

A recommendation for a broker that accepts limited company accounts would be useful.

Also, the information I can find online re the tax treatment is inconsistent. A couple of articles (as below) talk about penal taxes on investment income rising to 40% within the company but other articles don't mention this and I can find no mention of it on HMRC's website which leads me to conclude these are probably incorrect.

https://realbusiness.co.uk/investing-sh ... ed-company

https://businessadvice.co.uk/legal-advi ... ple-truth/

Any helpful information appreciated

Ron

HL also allows limited companies to hold an account (and was a lot easier to set up than IBKR)

I have done this in the past; my partner is currently doing this - placing her excess company profits into 1-2y gilts. Hmm tax implications I am not 100% as my knowledge is old and I've left the country - but when I did it my understanding was that dividends the company received were not taxable (given corporation tax had already been paid on the cash flow). So it is a vehicle to defer paying the income tax on dividends you mention in the hope it compounds up over time - fine if you don't need the money in the near term and the government doesn't normalise dividend tax rates with income tax rates say (if they did this I would expect they would phase any change like this).

Not sure about dividend income, but the savings interest my limited company received (from Business savings accounts) was subject to corporation tax.