Is it a good idea to use your Limited Company to build your pension fund? (Investing)

[mickael28]

Hello,

I'm starting to have spare cash in the limited company and was wondering if it'd be a good idea to start investing it long term with the view to build enough to provide income for an early retirement.

The problems I see with this approach is that you'll start paying a higher CT when your investment income is higher than your trading income, and you'll lose the CGT Entrepreneur's relief (for what I could understand) so you couldn't benefit for liquidating the company and retrieving the cash inside with a 10% tax bill in the future.

If it's not such a good idea, what other possibilities do you have to put into good use the money that's now sitting into a reserve account getting barely a 1.5%?

[Troll]

Hello,

I'm starting to have spare cash in the limited company and was wondering if it'd be a good idea to start investing it long term with the view to build enough to provide income for an early retirement.

The problems I see with this approach is that you'll start paying a higher CT when your investment income is higher than your trading income, and you'll lose the CGT Entrepreneur's relief (for what I could understand) so you couldn't benefit for liquidating the company and retrieving the cash inside with a 10% tax bill in the future.

If it's not such a good idea, what other possibilities do you have to put into good use the money that's now sitting into a reserve account getting barely a 1.5%?

Get some Colombian marching powder up your nose ..

HTH

[Archangel]

Buy some Rolf Harris art, for some reason it seems to be really cheap at the moment, a sure fire investment.*














*i am not qualified to give investment advice. But I do own an art gallery. Psst wanna buy some cheap Rolf's?

[OwlHoot]

I've invested in a warehouse full of "Jim fixed it for Me" T-shirts, all brand new and unused - They'll be worth a fortune in years to come!

[EternalOptimist]

Call me an old Fart
but I view all this as same old tulipe from the same old bumhole

i.e.
don't get a mortgage - thats debt
don't get a pension - that's a waste
dont' go for reliefs or exies - that puts you on the radar
don't divvy up the missus - that's asking to be sponged


earn yer wad, keep yer spends low, keep yer income high. keep yer head down, keep yer chin up

any questions ??

[AtW]

I'm starting to have spare cash in the limited company and was wondering if it'd be a good idea to start investing it long term with the view to build enough to provide income for an early retirement.

It's a very good idea if you are open minded enough to accept easily that Govt in the future will raid your pension pot.

Instead invest into:

1) house in some remote area
2) canned food
3) 3D printer

[mickael28]

Or the question could be asked in a different way: what do you do with the spare cash you've got inside the company?

[cojak]

Or the question could be asked in Accounting/Legal...

[Doggy Styles]

It's a very good idea if you are open minded enough to accept easily that Govt in the future will raid your pension pot.

Instead invest into:

1) house in some remote area
2) canned food
3) 3D printer

I'm surprised you forgot the AK47

[Goatfell]

I'm surprised you forgot the AK47

1) house in some remote area
2) canned food
3) 3D printer

Why buy one when you can print off as many as you need