New Child company as a share trading company

J

jimbojone

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Hi,
If in a company group structure we setup a child company which takes a loan from another child company which is profitable and the purpose of the new company is 100% to trade in equities, commodities and ETFS then what is the corporation tax rate of the new child company 12.5 or 25%?

Thanks in advance for the valuable advice
 
25% of course, plus 20% close company surcharge if it's a close company.

You won't get actual advice here though in relation to a question like this - all any of us can do is offer random snippets of (hopefully informed) opinion that hopefully will be helpful..
 
Last edited:
Hi Jim

Have you spoken to a tax advisor yet?

Restructure Company Structure for best tax treatment

Hi, I have a limited company which is finally starting to generate some retained earnings and I would like some Tax advice on potentially changing the company structure into a group structure. I would like to determine 1. If it is the correct thing to do given our circumstances 2. Where...
www.askaboutmoney.com

If you are generating excess cash in your business, you should probably be taking it out via a pension or salary rather engaging in complex financial engineering which is likely to result in big tax advisor bills and money stuck in a company which you will find very expensive to take out if you need it.

Brendan
 
Thanks guys. Yes been extracting into self administred pension. All going well and just looking at the next stage. Returns on self administred pension are around 19%pa for the past 5 years and I am thinking if perhaps some of that excess profits should be redirected into a child investment company, rather than the pension, which can return dividends into the parent company and that company can at some point in the future become a family investment company.
 
Let me know what you think and if you had a recommendation for a suitable advisor which does not cost the earth I would grateful
 
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