aviva scrip dividend scheme

clairbear_3

Ive got some in my ISA so the tax doesnt concern me.The beauty of this deal is come decision time the shareprice could be in the £3s alternatively if it crashes back to £2 Ill take cash and prob increase my holding

jem16

mrposhman wrote: »

on the scrip even though its not cash? Its not cash to come in for income so where would you put it on your tax return?

Reinvested dividend payments still count as income. You put it in the section for UK Dividends.

Surely by moving it into shares and never seeing the cash this wouldn't incur income tax but may incur capital gains tax?

It would incur both income tax and CGT.

ZZZ_2

If you decide to join the aviva scrip scheme does that mean you will not receive any further dividends and will instead accumulate shares. These shares will only produce money when they are sold??

ad44downey

ZZZ wrote: »

If you decide to join the aviva scrip scheme does that mean you will not receive any further dividends and will instead accumulate shares. These shares will only produce money when they are sold??

In a word, yes

firsttimestudent

Just an opinion

I'd say, Aviva at the moment is at quite a low price. I bought in at about 190p-ish, and my feeling is that the current support levels are around 210p.

Personally I'd take the scrip dividend, reinvest - as I believe when the market recovers, you will be in effect getting more out of the same dividend.

StevieJ

If you are in a nominee account, do you get a choice

firsttimestudent

StevieJ wrote: »

If you are in a nominee account, do you get a choice

I think it depends on which stockbroker you use.

I understand for some (from what I read elsewhere), you get to choose (e.g. Hoodless Brennan); for others like TD Waterhouse (I think!), you can't!