Using trading capital from a limited company in the UK, is it necessary to setup an Interactive Brokers account as a Professional or will Individual suffice? Will there be any tax implications of using an Individual IB account? There will be no other capital used other than that which i have accrued through contracting as a Ltd. company in the UK. It is preferable to use an Individual IB account as these have much lower market data subscription fees. Cheers!
This is question for IB, really, as its answer is going to depend on both their own regulations and maybe their interpretation of them. Whichever way you do it, there'll undoubtedly be tax implications for the company's owners. But I can't see any reason why the tax position, as far as HMRC is concerned, should be any different according to whether a professional or individual account is operated by the limited company client at IB. I'd think this is a matter only between IB and yourself, surely? It's not HMRC's business what account-type a company chooses to operate?
Open two accounts, individual subscribed to exchanges and used as charting/datafeed then put the orders on in business accounts that is not subscribed to any exchanges.
But why do that if there is no link between IB and HMRC other than cash out of the company account and PnL statement from IB. Meaning that there is no reporting direct requirements of IB to HMRC, so why not use individual accoubt for trading?
when you wire the money out of IB, it will go to your personal bank account. That account (if located in the UK) will have some reporting with HMRC
interesting point. i've quickly checked on the IB interface (of pro account) and it seems i can wire the money to any bank account (using International Banking Account Number (IBAN)) - do you know if this is different on a individual account? is it locked to a personal bank account?
Individual account can only wire to a bank account in your name. I thought you were trying to not pay the professional exchange fees.