asking for a friend (not really, it just sounds like one of those).
The idea to buy gold (sovereigns I'm thinking) with retained profit, as a hedge against currency fluctuation. And to pay dividends using these gold sovereigns.
Are there any problems with that? (I accept the risk that the gold price may fall, and my warchest is just fine).
The only issue I can see is that the company may have to pay CGT on any increases whilst it owns them. Not sure about that though.
Would it prevent me from using ER in the future?
NOTE: this is **** all to do with tax avoidance just wanting to protect the profit I have.
The idea to buy gold (sovereigns I'm thinking) with retained profit, as a hedge against currency fluctuation. And to pay dividends using these gold sovereigns.
Are there any problems with that? (I accept the risk that the gold price may fall, and my warchest is just fine).
The only issue I can see is that the company may have to pay CGT on any increases whilst it owns them. Not sure about that though.
Would it prevent me from using ER in the future?
NOTE: this is **** all to do with tax avoidance just wanting to protect the profit I have.
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