tens of thousands in shares - each year? for 20 years? - adds up...
Why I would consider investing in a company - company tax rate, 25% vs Ind 47% (assume top tax rate), 22% more invested. Annual income taxed at 25% vs 47% (assuming your income ratio doesn't cause you to lose the 25% rate). Future CGT 25% vs 23.5%. So some good savings upfront, along the way, and the final cost isn't greatly different as a % (but if the gain is huge it will add up).
(Hence why I like super 15% (or 30% & 10%) tax rates)
You also have control when your dividends are paid, so for example could drip feed these shares/profit out to you after retirement. Basically turning your business company into a retirement fund (hence why a second company)
Why I wouldn't use the company, complicated the company, asset protection, you need to keep the company going for as long as you have the shares, even if your business has stopped. Future CGT 25% vs 23.5%. CGT losses? need to keep the company for the losses - will you have anything to offset the losses?...
I think there is no easy answer to the question from what I know. It really does involve, what is your 'plan' and how would this be built into that.
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