Hello all,
Thankfully I came across this resource while researching certain Irish tax issues from the UK!
My situation is that I plan to move to Ireland from the UK, with the intention of managing my own capital for a living. I would be actively trading US Futures, Offshore ETFs, Options mostly (10 trades a day). I am having some trouble coming up with an idea of the most tax efficient means of setting myself up. I live in the UK at the moment and had naively assumed that I could set up an Irish Company and pay 12.5% tax. After a few hours on this site I realised the error of my ways!
The way I understand my options would be as follows;
1] Just trade from accounts in my own name and pay income tax as it would be my main source of income. I get the impression that I would not be allowed CGT treatment on this basis.
2] Set up a company. Again paying Income tax as I would have to distribute all earnings to avoid a close investment company surcharge. The adv here is it would be easier to offset certain costs against income
3] Set up a Gross Roll up fund. Pay CGT after 7 years. However, I understand that in this case I would need to raise outside money and own maybe only 25% of the fund myself. Charging fees to other investors, paying income tax on that fee income, but benefiting from Gross roll up CGT treatment on my own capital.
I know there are many much brighter tax minds on this forum and people who are in the same situation as me. As such I would be grateful if anyone had a better / cleaner solution I could investigate as 52% income tax on gains from my own capital seems too harsh, considering even in the UK its much easier to get to 28% area.
Thanks in advance!
Thankfully I came across this resource while researching certain Irish tax issues from the UK!
My situation is that I plan to move to Ireland from the UK, with the intention of managing my own capital for a living. I would be actively trading US Futures, Offshore ETFs, Options mostly (10 trades a day). I am having some trouble coming up with an idea of the most tax efficient means of setting myself up. I live in the UK at the moment and had naively assumed that I could set up an Irish Company and pay 12.5% tax. After a few hours on this site I realised the error of my ways!
The way I understand my options would be as follows;
1] Just trade from accounts in my own name and pay income tax as it would be my main source of income. I get the impression that I would not be allowed CGT treatment on this basis.
2] Set up a company. Again paying Income tax as I would have to distribute all earnings to avoid a close investment company surcharge. The adv here is it would be easier to offset certain costs against income
3] Set up a Gross Roll up fund. Pay CGT after 7 years. However, I understand that in this case I would need to raise outside money and own maybe only 25% of the fund myself. Charging fees to other investors, paying income tax on that fee income, but benefiting from Gross roll up CGT treatment on my own capital.
I know there are many much brighter tax minds on this forum and people who are in the same situation as me. As such I would be grateful if anyone had a better / cleaner solution I could investigate as 52% income tax on gains from my own capital seems too harsh, considering even in the UK its much easier to get to 28% area.
Thanks in advance!