Hi sloudon and welcome.

If you trade profitably as a sole trader then it's certainly very possible that a trustee would take an interest in the income generated.

Would they be interested in funds raised to initiate such a venture? Much would depend upon the precise facts and also the way that the trustee interpreted them.

I wouldn't start doing this as a sole trader without agreeing in advance with your trustee exactly how the detail would work.

You can be a Director of a limited company while in a trust deed. We've heard from time to time that people have found it tricky to access business banking facilities while in a trust deed - the banks often take an interest in who the Directors are.

If you'll be a shareholder of the company you'd also need to be conscious that the firm being a success may create an asset that your trustee later takes an issue in.

I'd really recommend talking to your trustee about this directly and suggest that you don't assume in any way that doing this will be impossible. It's just a question of knowing exactly where you stand and then making a judgment about whether you want to go ahead with that knowledge in mind.

Thank you for your reply,

I would never have went straight in without first advising and discussing with my trustee, I was looking for information that would allow me to understand how my trustee may be thinking when I go to enter such discussions.

Its also great to know of the possible obstacles I would face with other financial institutions.

Your advice has been great and exactly what I needed, Thank you.

Just to clarify - there is nothing legally stopping you going ahead and setting this up.