My parents (who are self-employed and have just become a LTD co. ) have been told by our accountant that they can £10,000 in dividends out of the company between them.The most efficient way to get cash is via dividends. Around £30,000 per annum per shareholder has no further Tax Liability.
You could use a spread-betting company if you're into speculative activities (rather than investments) which is (currently) totally free of all taxes.
A couple of months ago I wrote to the Inland Revenue who advised me that trading Futures or CFDs would likely not be classed as a Close Investment Company. i.e. the effective tax rate starts at 19%
Trade shares and its a different matter. You will be classed as a Close Investment Company.
Additionally as dividends are classed as basic rate tax paid, if you have no other income then you can take out £29,900 tax free per person per annum.
Any further withdrawls would require 25% of the total to be paid in income tax.
If you were to trade as an individual and trading profits were your main source of income then all profits will be classed as income and taxed as such. You will not get a CGT allowance.
JonnyT
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