Joint investments for shares is a waste . due to having to half all dividends for tax purposes. Also when if a company does a company restructure it becomes a nightmare better just buy 2 parcels one for husband and one for wife.
If two people always had the same income, joint shares could be an option. However, like you said it is probably simpler to just purchase two seperate parcels.
If you have a mum/dad company which is running a business which is reasonably profitable is it worth the company buying shares with excess cash flow? At what point does the tax rate change to 25%
You have to be a base rate entity to stay at the 25% tax rate. "it has 80% or less of their assessable income in that income year that is base rate entity passive income" This would be the thing you would need to be careful of if purchasing shares through a company. You also don't get a CGT discount as a company.
Hello Ethan, great videos really informative. My wife and I running a business soon in a partnership structure with no employees as of yet. . We are only getting everything together at this stage so its a start up. I am new to running a business so bookkeeping service would be good, and to work with an accountant to review our structure later. Do you have a fees structure with your services. Regards, Chris
It can be done but it might not be the most efficient option depending on how your debt is structured. Definitely a good one to seek individual advice on.
What else do you want to know about when it comes to structuring?
Joint investments for shares is a waste . due to having to half all dividends for tax purposes. Also when if a company does a company restructure it becomes a nightmare better just buy 2 parcels one for husband and one for wife.
If two people always had the same income, joint shares could be an option. However, like you said it is probably simpler to just purchase two seperate parcels.
If you have a mum/dad company which is running a business which is reasonably profitable is it worth the company buying shares with excess cash flow? At what point does the tax rate change to 25%
You have to be a base rate entity to stay at the 25% tax rate.
"it has 80% or less of their assessable income in that income year that is base rate entity passive income"
This would be the thing you would need to be careful of if purchasing shares through a company. You also don't get a CGT discount as a company.
Hello Ethan, great videos really informative. My wife and I running a business soon in a partnership structure with no employees as of yet. . We are only getting everything together at this stage so its a start up. I am new to running a business so bookkeeping service would be good, and to work with an accountant to review our structure later. Do you have a fees structure with your services. Regards, Chris
Thanks! Yeah definitely get in touch and we can give you our pricing structure.
does turning a principal place of residence into an investment property be advisable to an accountant ?
It can be done but it might not be the most efficient option depending on how your debt is structured. Definitely a good one to seek individual advice on.
Is an Investment Trust the same as a Discretionary Trust ?
No. Trusts are complex though and best to seek personal advice.