A few words going forward 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 important that we retain the ability to hedge (trade long and short), and are able to 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 good for us. Moreover, CFDs are traded 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 everyones thoughts after I get further clarification from my accountant.