Taxation on Ltd companies shares

[forest172]

I have some ETF`s and money market funds with invest engine all in my Ltd company's name making good gains

When do you pay the corporation tax? At the end of end tax year based on the value as of that day OR when you sell them and turn them into cash?

Edited by forest172 on Tuesday 26th August 15:51

[YouWhat]

When the gain is crystallised, when you sell.

[forest172]

That’s exactly what I thought. My accountant said this previously but now say they want to see the value of them at the end of the companies tax year. Then put this down as a gain or a loss and tax according

[PoorCarCollector]

forest172 said:

That’s exactly what I thought. My accountant said this previously but now say they want to see the value of them at the end of the companies tax year. Then put this down as a gain or a loss and tax according

New accountant time!

[OutInTheShed]

ISTR it's more complicated than that, which is why is not that clever to use a normal one-man LTD trading co (such as a contractor's personal LTD) as an investment vehicle.

It gets to the point where you need a different accountant, not the bloke who does tax returns for plasterers and hairdressers.

[MaxFromage]

forest172 said:

That’s exactly what I thought. My accountant said this previously but now say they want to see the value of them at the end of the companies tax year. Then put this down as a gain or a loss and tax according

Are you sure that's what they told you exactly, as that's almost correct and it could be how they explained it?

You have to revalue the assets every year and in this case there will be a gain and an increase in their value on the balance sheet. That gain will result in a tax adjustment called deferred tax. In the case of this gain, this will show as a liability, but it is not paid to HMRC. This liability for tax will only be realised when the asset is sold.

[forest172]

Ok could well be, I’ll double check tomorrow