How to get into shares?

sabretoothtigger

Porcupine wrote: »

Your broker pays the tax on your behalf when you buy the shares. Let's say the deal fee is £10 and you want to spend £100 on shares £1 each. Take the deal fee off, so that's £90 left. Then there's 0.5% tax, which is 45p in £90. So you actually get £89.55 worth of shares, which translates to 89.55 share units.

In other words the deal has cost you £10.45. Stamp duty is only on purchases, so to sell will cost you a straight £10. So if you bought and sold without the share moving at all you'd be down £20.45 - just over 20%, which is why buying small amounts of shares tends not to work very well.

If you buy paper shares from Uncle Joe without using a broker, you have to pay the tax directly to HMRC.

There's probably a way your business (if a limited company) could buy shares if it wanted to, but it probably won't be tax efficient in terms of profits.

A company can write off losses and carry them over to the next tax year. I dont think people can do this, just within 1 year

Also the sell price is never same as you bought it for, you wouldnt expect a Jeweler to buy back at retail price and its sorta similar.
So the market has not moved at all but the share that cost you 100p is worth 95p and thats the price you get back, add on another 5% loss

The spread varies, generally a ftse 100 company will be less then 1% loss to sell and an Aim company might be 20% loss ie. nobody wants your backroom company share.

Forget the halifax share game or any other it is pure fantasy. Go to stockchallenge and play that because it includes spread