Is this the way forward
Discussion
Hi
Having a little overhaul of my finances and I came up with this plan, is it feasable
1 form Limited company
2 make my children directors
3 move my stock portfolio into limited co
4 move any cash on deposit into limited company
5 buy small property with cash
6 pay capital back to me via my loan account
With average dividends and rental incomes around the 5% it will take many years to pay the capital back via my loan account which will be tax free I can then start transferring shares to my childern who are in there late twenties which may help with inheritance tax as i am in my late fifties
Well pistoheaders does this sound like a good plan
keith
Having a little overhaul of my finances and I came up with this plan, is it feasable
1 form Limited company
2 make my children directors
3 move my stock portfolio into limited co
4 move any cash on deposit into limited company
5 buy small property with cash
6 pay capital back to me via my loan account
With average dividends and rental incomes around the 5% it will take many years to pay the capital back via my loan account which will be tax free I can then start transferring shares to my childern who are in there late twenties which may help with inheritance tax as i am in my late fifties
Well pistoheaders does this sound like a good plan
keith
Really needs specialist advice with all the specifics laid out.
Couple of points
Share transfer to ltd co sounds like sale - so cgt for you and stamp duty too. Not sure if incorporation relief is doable as hmrc resist hobby investments becoming a business (e.g btl property don't qualify for incorporation relief)
Giving away shares that have a value are deemed to be at market price. So could still be cgt taxable and for iht they can go back 7 yrs. you do however have tax free limits to use... But again advice on amounts
Also consider divorces etc - giving kids ownership now could give rise to 3rd party claims
Think about trusts - can transfer beneficial ownership without creating liabilities. But government are on this (see jimmy Carr for details) so you may pay out loads in fees.
That's for avoiders I think the evaders are buying diamonds and Swiss deposit boxes ;-)
Couple of points
Share transfer to ltd co sounds like sale - so cgt for you and stamp duty too. Not sure if incorporation relief is doable as hmrc resist hobby investments becoming a business (e.g btl property don't qualify for incorporation relief)
Giving away shares that have a value are deemed to be at market price. So could still be cgt taxable and for iht they can go back 7 yrs. you do however have tax free limits to use... But again advice on amounts
Also consider divorces etc - giving kids ownership now could give rise to 3rd party claims
Think about trusts - can transfer beneficial ownership without creating liabilities. But government are on this (see jimmy Carr for details) so you may pay out loads in fees.
That's for avoiders I think the evaders are buying diamonds and Swiss deposit boxes ;-)
Sounds feasible.
Your stock transfer may give rise to capital gains as mentioned.
Better to set up an "investment company" first dish out shares at nominal cost. They have very little value at this point.
Then you inject your capital in the form of a loan as stated.
Loan repaid as noted, though any interest in theory is taxable for you and reclaimable for the company.
I dont see why it wont work. Almost a real estate investment trust in effect. Or a property management co.
Plenty of them around. You just need to fill in the right forms and do things in the right order and its a goer.
Your stock transfer may give rise to capital gains as mentioned.
Better to set up an "investment company" first dish out shares at nominal cost. They have very little value at this point.
Then you inject your capital in the form of a loan as stated.
Loan repaid as noted, though any interest in theory is taxable for you and reclaimable for the company.
I dont see why it wont work. Almost a real estate investment trust in effect. Or a property management co.
Plenty of them around. You just need to fill in the right forms and do things in the right order and its a goer.
Yes.
Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
ringram said:
Yes.
Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
Absolutely. I think.Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
ringram said:
Yes.
Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
Wow. Its what the government wants you to do and what society expects to be sucessful.
Its called using your brain. Either be exploited as a wage slave or see reality and step out of slavery into freedom from oppression.
Those that do not think are havested throughout their lives by those that do. The social construct of society is designed around this. Wage earners are the farm animials and business owners and corporations are the means by which their lives are harvested. Consumerism feeds the cattle. George Orwell's animal farm is here and now.
Knowledge and education are the way out. Step away from brain death, labour's education policies, art and media studies into real value added knowledge industries.
Sure OP wants to construct a legally viable business to optimise his situation, but in reality he is seen a bit of the truth and has glimpsed the path to salvation.
To deny him of this right of freedom is to embrase slavery, oppression, stagnation and failure. Therefore it is more morally right for him to do this than to accept permanent slavery to the masses of lazy entitlement leeches who need thoughtless cattle to suck dry through the mechanics of the socialist state.
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