Most Tax-Efficient Set Up?

[The Leopard]

Are there any UK-based futures traders that have any particularly good ideas on ways to structure my trading activities to minimise tax implications?

I'm going to see someone about it but thought it would be nice to have a few ideas in mind before I do.

 

[rsh01]

Are there any UK-based futures traders that have any particularly good ideas on ways to structure my trading activities to minimise tax implications?

I'm going to see someone about it but thought it would be nice to have a few ideas in mind before I do.

i used to go through a loan based scheme when working in the city (though not as a trader) - i paid about 20%-22% total (a little more than jimmy carr), its still operating and covers income through trading when i last spoke to them.

if you require more info then the companies i know of were cascade & dms - both in london. they do have other structures but i do not know the details.

 

[scose-no-doubt]

You can't set up new loan dealies any more afaik.

The best answer is subjective cos it's dependant on your cash needs really. You're just better off talking to the tax geezers

 

[The Leopard]

You can't set up new loan dealies any more afaik.

Where did you hear that? They're still being advertised at any rate.

The best answer is subjective cos it's dependant on your cash needs really. You're just better off talking to the tax geezers

Naturally. I'm just wondering if there are any peeps on here willing to give a few pointers as to possibilities.

Thanks to Teh Scose and RSH for their inputs.

 

[rsh01]

You can't set up new loan dealies any more afaik.

can you post the link saying the law has been changed....cannot find anything on it.

tax management companies know of various loopholes which they aim to take advantage of and the 'recallable' loans was just one. when law changes they replace them which i wld expect has happened here, if that loophole has indeed been closed.

edit: they work on the principle that the loophole can & will be closed down soon, and as that is ultimately their business model, they obviously have contingency in place when that happens......else they go bust.

 

[scose-no-doubt]

When HMRC closes a loophole they can't apply the changes retrospectively so if a controlled and operated scheme rather than an individual's scheme is already then there's a chance it can still go through but who's to say what's been diddled with the HMRC declaration and where they're actually putting the money? I know first hand that they closed down a few of the Cyprus based loan dealies from April gone so I'm assuming the only ones left will be in Jersey/Isle of Man type places and they are not easy = not cheap or more exotic/less regulated places which obviously offer a different set of problems.

I've heard from a sneaky prawn for those looking for something simple, UK based and transparent, that prop firms' (or at least one at any rate) advisers generally favour a LLP type structure with an individual/corporate partner split which should be fairly attractive given the new sub 20% Tory CT rates for under 300k but again this can cause a different set of issues. I didn't get to prod enough to figure out how (if at all) the bookies were dealing as I didn't want to be too obtrusive yadda yadda with said issues (mainly corporate classifications and issues re main rate tax) but with 10% at risk it's more than a bit of an issue IMO.

Good luck anyhow and I'd be very interested to hear what they come back to you with if you don't mind sharing... by confidential email of course.

 

[scose-no-doubt]

Take what I say with a pinch of salt btw as I don't specialise in this stuff and only come across it intermittently

 

[NVP]

Are there any UK-based futures traders that have any particularly good ideas on ways to structure my trading activities to minimise tax implications?

I'm going to see someone about it but thought it would be nice to have a few ideas in mind before I do.

lose money ? (sorry - couldnt resist )

 

[scose-no-doubt]

loose

 

[NVP]

i used to go through a loan based scheme when working in the city (though not as a trader) - i paid about 20%-22% total (a little more than jimmy carr), its still operating and covers income through trading when i last spoke to them.

if you require more info then the companies i know of were cascade & dms - both in london. they do have other structures but i do not know the details.

going going gone..........Nick Clegg is on a mission now to get street smart people to pay more tax it seems after his summer holiday .... so everything being shut down

N

 

[The Leopard]

lose money ? (sorry - couldnt resist )

Loose money - also couldn't resist.

EDIT:

Teh Scose beat me to it.

 

[rsh01]

lose money ? (sorry - couldnt resist )

good point though, can you bring previous loosses (?) forward and net off against current year taxable income?

you should be able to as it is in effect an investment into your business.

(assuming you did loose some money in the early stages).

TL, interested to hear how the meeting goes tmrw.

 

[The Leopard]

good point though, can you bring previous loosses (?) forward and net off against current year taxable income?

you should be able to as it is in effect an investment into your business.

(assuming you did loose some money in the early stages).

TL, interested to hear how the meeting goes tmrw.

Not tomorrow, still researching firms I want to speak to. I have some experience in the industry, but nothing really of this type.

 

[scose-no-doubt]

You can only offset losses of one trade against future losses of that same trade. You'd have very little chance of selling a new structure as a continuation to HMRC. Now if you were to have an LLP with a corporate partner I think I could make a case as I've done similar for property owners.

 

[Liquid validity]

good point though, can you bring previous loosses (?) forward and net off against current year taxable income?

you should be able to as it is in effect an investment into your business.

(assuming you did loose some money in the early stages).

TL, interested to hear how the meeting goes tmrw.

Yes thats perfectly legit, a loss for any tax year within the last 3 can be offset
against this years tax. Any left over is allowed to be carried forwards to offset
against later tax years. Pretty sure you can only go back 3 years when offsetting a loss.