I’ve done an extreme amount of work in the past months leading into the new year preparing a company for mid 2004.
I’ve realised a couple of major points which I would like some confirmatoin on:
1. Under a company structure assets can be bought with profits before being taxed on that money due to the fact that you are feeding money back through the company in asset form. This, however, cannot be done through a relative company due to the fact that a company cannot merely push money through other channels without a specific purpose eg- the relative company would have to be providing a serbice to the initial company.
2. You can (and I believe this is also with personal investing) offset Capital Gains Tax against previous losses during the financial period. These could in fact be ghost losses and therefore a major benefit for the company.
Most of what I’ve researched points to these procedures being correct, has anybody had any experience with anything similar??[?]Alexander, in a company there is no Capital Gains Tax. It is basically added straight as income tax, and taxed at 30%. there is no exemption for holding greater than 12 months – a big disadvantage to holding growth assets in companies.
Cheers
Mel
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