Company x Trust - CGT discounts

Hey all,

I have a couple of questions in regards to holding stocks through a Company x Trust (over a year period). I'm aware that Company does not have any long-term capital gain tax benefit whereas if I have held it though Personal or Trust I would have 50%.

• If I intend to hold shares and invest long term, investing through trust would make it more sense in regards to CGT taxes than Company LTDA?
• When investing with Company, I simply transfer the sitting money in my bank account to my broker account and invest it - whenever I want. How would that differ when investing through a trust? Will I need to wait for a EOFY to transfer the profit from the company to the trust then invest it or I can simply transfer whatever/whenever I need to the Trust broker account?

Thanks in advance!

 

Your understanding of company tax may not be correct because a company tax is not the final tax. See my tip in the tax section.

Don't simply transfer your money to the company or you may regret it later.

Get some legal and tax advice

 

@Terry_w ,

Thanks for the reply. I'm sorry... small correction in my post:

When investing with Company, I simply transfer the sitting money in my company bank account to my broker account and invest it

 

I suggest you don't do that

 

@Terry_w ,

About using the company's revenue money sitting on its bank account to invest in shares? Not sure why I can't do that, I'm sorry...

I'll have a look in the My Tax Tips link - lot of useful links - thanks for that!

 

You could do it, but just because you can doesn't mean you should. I think i have a legal tip on this.