Investing as person or through a company.

[TDada]

On behalf of family member: "I own 26% of one company and I just acquired 20% of another. Wondering whether to set up an investment co. or keep the investments as me." thanks

Far too many variables to give anything meaningful here. You need to discuss your whole financial situation (income, investments, dependents, pension, beneficiaries on death etc.) with an accountant.

That is what I said but okay to make the following assumptions:
His main objective is to minimise the (capital gains / income ) taxes on return on the investment. He and wife are higher rate tax payers but run their own business and so can vary their annual income. Inheritance tax is not a consideration.

I will send him to an adviser but wanted to politely give him a pointer. thanks

If they are higher rate taxpayers with their own business then surely they already have an accountant? From experience, it is never OK to make any assumptions I am afraid , but to drop in two things to think about: (i) holdings of more than 5% of an unlisted company may qualify for Entrepreneur's Relief which is not normally available if held through a company (ii) a SIPP can be very tax efficient if you are happy to lose access to the funds until retirement.

agreed. Think that the person might be trying to ask around to get the right answer informally but will encourage hime to formalise. Suspent the acquisition cost is low and therefore he is not inclined to forkout fopr much advice but what happens if the investment becomes hugely successful. Thanks will pass on your tips.