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How to Invest on other peoples behalf?

Friend offered me £5k to invest for them. How do I do legally?

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I have invested on the stock market myself for the last 7 years. Started whilst a univeristy.

Now I am a qualified accountant and a family friend has offered my £5k to invest on thier behalf.

Problem is, I am not a qualifed financal adviser and I am aware their are very strict rules around investing other peoples money and offering financal advise. I dont believe I am legally qualified to do so even as an accountant.

However, one way around this problem, I believe may be to set up as a company where they put the money in as a shareholder and I as a just a diector. This way I am not offering them financal advise as the company is seperate legal entity.

Problem is, from what I can garther is they would be tax twice. Capital gains tax + tax on a dividend if they ever extracted the money.

Anyone know how I can do this in a legally + low tax way?

Seems like a lot of messying around for £5k. but I dont want to say no!!!!

Thanks

Joe

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