Halifax share builder help

khampson

Hi, I've opened up a Halifax share builder account, my plan is to buy £100 of shares in 1 company per month, if I do buy £100 shares how much will the share need to be worth to break even?

A couple more questions I need help with:

If I buy £100 of shares in say Tesco one month and say I bought another £100 in Tesco the next, could I sell all the shares in 1 go meaning I only pay 1 selling fee or would I need to sell them in 2 deals as they were bought that way?

Can I buy unit trust investments using share builder?

How does tax effect the buying and selling of shares?

How is dividends paid? Does it go into a holding account or are more shares bought in that company, if so do I pay any fees for buying the extra shares from dividends.

My plan is to invest for 5 years+

Regards Keith

sabretoothtigger

Martin wrote this a while ago - http://www.moneysavingexpert.com/savings/cheap-online-sharedealing


You can sell all in one go always. Halifax charge 1% to reinvest the dividends I think. The government charges 0.5% tax on share buys


The sums would be roughly:

1.50 commision
50p Tax

2 pounds cost to buy. Halifax charge 5 to sell for amounts under 250 and 11.95 otherwise.

So a year of Tesco

2 x 12 = 24 to buy
11.95 to sell
1200 capital invested

36/1200 is 3% lost

3% gain in Tesco share price over your averaged buy price means you get your money back

Tesco yields 3.56% per year and the taxman steals 20% of that so its 2.848% for basic rate payers

There is no capital gains tax unless you gain over 10k in profit a year

Average FTSE gain is about 3% long term excluding dividends I think that is and ignoring inflation.
If you bought in this one year and held it for 5 years assuming 3% per year and you took the divs as income/offset costs it'd gain about 16%



http://www.businessweek.com/magazine/content/11_23/b4231020954324.htm
http://www.retailcustomerexperience.com/article/181734/Tesco-still-fighting-uphill-battle-in-the-United-States

marvin

khampson wrote: »

Hi, I've opened up a Halifax share builder account, my plan is to buy £100 of shares in 1 company per month, if I do buy £100 shares how much will the share need to be worth to break even?

Price paid + dealing costs (buy and sell)/ number of shares = your break even value.
A couple more questions I need help with:

If I buy £100 of shares in say Tesco one month and say I bought another £100 in Tesco the next, could I sell all the shares in 1 go meaning I only pay 1 selling fee or would I need to sell them in 2 deals as they were bought that way?

No sell in any way you want but best to make sure with the £5 and £11.95 split if you can sell in 2 lots and keep under the £250 limit to save £1.95

Regards Keith

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khampson

Only 3% increase on average per year? I've been getting 6% increase on ratesetter after tax, maybe shares are not as good as I thought.

Keith