How does a sock and share Isa work

hebron

Thanks everyone for clearing that up for me.

ses6jwg

What a bloody con.

cheerfulcat

Lokolo wrote: »

Thats what I said....?

No - your source quoted 2004 as the date from which the dividend tax credits were eliminated, when in fact it was 1997....in Brown's first Budget...

Lokolo

cheerfulcat wrote: »

No - your source quoted 2004 as the date from which the dividend tax credits were eliminated, when in fact it was 1997....

Oh right yeh but the S&S tax issue was right

The expert wasn't meant to be the gurdian..... that was just a side note

cheerfulcat

Lokolo wrote: »

Oh right yeh but the S&S tax issue was right

The expert wasn't meant to be the gurdian..... that was just a side note

Your Guardian "expert " lied.

debbie42

Lokolo wrote: »

When you sell you get a profit.

If this was always the case I'd be a much wealthier woman :rolleyes:

ses6jwg

That's a great incentive for private investors to save and to contribute to the British economy, tax them on their fckin dividends?

Do they get taxed if they are automatically reinvested?

Lokolo

ses6jwg wrote: »

That's a great incentive for private investors to save and to contribute to the British economy, tax them on their fckin dividends?

Do they get taxed if they are automatically reinvested?

Yes but you don't see the tax. It's the same with accumulation funds.

EdInvestor

in April 2004 the 10% dividend tax credit was scrapped, so for basic-rate taxpayers dividends are taxed as outside the Isa wrapper.

That is, they are effectively tax free, because they come with a 10% tax credit which pays the tax owing. So no advantage for BRTs on divis in ISAs, just on capital gains.Given that the annual CGT allowance is 10k, you might as well use your stocks and shares ISA allowance for gilts corporate bonds and commercial property funds and anything else that isn't classed as a stock or share..

atypical

Am I right in concluding that you don't pay tax on dividends if you are a basic rate taxpayer?

Here it states that if you are a non-taxpayer you shouldn't claim the 10% tax credit. Doesn't that mean you have the odd situation of taxpayers not paying the dividend tax but non-taxpayers paying it?