Trust or Company for trading

Hi all,

I'm a high income earner (47%+) who likes to use their discretionary income for share trading and investments.
The idea is to grow a large enough bounty so that in 10-20years' time I can live off of passive income.

My day job income is expected to continue to increase over next 10 years so the likelihood of me paying less tax is 0.

What's the best way to structure my activities to minimise tax? I would plan on withdrawing ~10-15% of my trading gains p.a. to finance investments in property, so the remainder would be recycled for future trading opportunities.

Thanks

 

What activities are you referring to? If share investing a discretionary trust is worth considering because of the flexibility, add in a company as a beneficiary and it allows income to be shifted to the future.

Get legal advice on the structure of the trust and bucket company

 

Do you have a partner or adult children with low income?

 

Yes I do have a partner who is earning less. I also have family members who are int he same situation.

I've been advised in the past to setup a trust account for these activities, but my understanding was that all profits would have to be distributed lest they be taxed at the highest marginal rate.
The nature of my trading will be to continue to continue building my captial base (through deposits+reinvestment) until I get to a point where I can withdraw a passive income, so I'm not sure if a trust would dllow me to do that given I'd have to distribute profits each year.

 

Have you heard of the bucket company strategy? I have a mini email series you can sign up to on my website.