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Setting up a company to buy / sell stocks through?

  • 04-10-2019 7:35pm
    #1
    Swagat
    Registered Users, Registered Users 2 Posts: 5 ✭


    Hi all,

    I've been getting into some stock investing over the last year or so.

    I'm not into day trading, etc. My strategy is buy & hold long-term. I have a mix of growth & dividend stocks.

    I have about 2.5k to invest each month, so I'm wondering is it possible to set up a company & buy / sell stocks through the company?

    My main thinking behind this is that I'm wondering is there some benefits doing this through the company (tax breaks, etc.) ?
    Tagged:


Comments

  • #2
    MarioLuigi
    Closed Accounts Posts: 54 ✭✭MarioLuigi


    Because you'll want to keep your funds invested, ie. not withdraw a salary from the company, due to corporation tax and close company surcharge you're better off doing this as a sole trader.


  • #3
    Swagat
    Registered Users, Registered Users 2 Posts: 5 ✭Swagat


    MarioLuigi wrote: »
    Because you'll want to keep your funds invested, ie. not withdraw a salary from the company, due to corporation tax and close company surcharge you're better off doing this as a sole trader.

    Appreciate the advice. I'll look into how to become a sole trader so.

    Will probably have some more questions about expenses, etc. but I'll do a bit of research anyway and see what I come up with.

    Thanks again for your feedback!


  • #4
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    You will have an uphill task persuading Revenue that you are trading. They will see you as investing, and liable to capital gains tax on profits less losses.


  • #5
    MarioLuigi
    Closed Accounts Posts: 54 ✭✭MarioLuigi


    nompere wrote: »
    You will have an uphill task persuading Revenue that you are trading. They will see you as investing, and liable to capital gains tax on profits less losses.

    I think the opposite would be more likely. You'd have a tougher time convincing Revenue that you're "only' investing and liable to CGT (33%) rather than actively trading and liable to income tax (potentially 52%).


  • #6
    boring accountant
    Registered Users, Registered Users 2 Posts: 335 ✭✭boring accountant


    The tax environment is prohibitive for investors in Ireland unfortunately and there are numerous anti-avoidance provisions to prevent individuals from getting a tax benefit from setting up a corporate structure.

    I wouldn't be too worried about being classed as trading if you're mainly buying and holding.

    If you're actively trading on a day to day basis and making large profits then Revenue may raise an assessment, but if that's the case then you can afford some professional advice.


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