Going forward a few words regarding our ‘Slow Trader’ fund.
As our fund grows, I’m looking at its future organisation.
I’m considering moving the fund to a CFD traded corporate trust account, nominated as a hedge fund.
If we were to do this, we still wouldn’t pay stamp duty, but we would pay capital gains tax.
Shares within the company would reflect the share distribution of the fund. Any losses would be tax-deductible.
It’s essential that we retain the ability to hedge (trade long and short), and can trade intra-day in our present selection of forex, commodities and shares, from a platform I’m familiar.
Some technical stuff: A CFD, a derivative, satisfies this requirement. CFDs have a spread on forex and commodities; shares are commission only, no spread. Which is all right for us? Moreover, CFDs are on margin with a provision for guaranteed stop orders.
A private limited company for such a purpose would be relatively easy to manage and report. I will let you know on this and seek everyone’s thoughts after I get further clarification from my accountant.