Royal Mail Shares

Northern_Light01

dealsearcher wrote: »

The difference between Lloyds and HSBC is that HSBC currently pay a dividend. With Lloyds now planning to start paying dividends next year their share price should rise. That would be good for the tax payer as we would like to get as much back as possible after the banking debacle of 2007 - 2008.

Reference the bad news surely they have forensically examined all of these banks by now? I would hope they are emerging as much better businesses than they ever were before. :undecided

Hopefully the days of the misselling scandals and other horror stories are behind us now.

The fact that the Government have given a vote of confidence in Lloyds is of course a good sign. But the state of RBS (very little chance of privatisation till after the next election) must be something of an area of concern.

Pete268

Well I banked my cheque from Equinity yesterday.

I sold all the shares by their postal service, with a trade date of 5th November. They sold at £5.7703 per share which netted me a cheque for £1300.04 after the £9.82 transaction fee.

As this is my first foray into the stock market, I am a little unsure about the letter that accompanied the cheque. It says 'This share sale advice should be retained for Capital Gains Tax purposes'.

Does this mean my profit form the shares will be taxed as a capital gain? I am a basic rate income tax payer if that makes any difference and am well under the threshold for being a higher tax rate payer. I have never paid Capital Gains tax before.

Many thanks
Pete

westy22

CGT will only be payable if your total gains from sales of assets exceeds £10,900 in 2013-14.

You seem to have made about £551 profit on RM shares so well within the annual allowance.

blinko

Anyone know if the strike will go ahead?

Froggitt

Not had any post since Thursday 6pm, so I assume the strike is already on......

BarleyGB

Northern_Light01 wrote: »

I missed out on the initial offer because I was unsure about share dealing. But over the last while I have read up a bit about the stock market and have even gone as far as opening a share dealing account.

Disappointed of course to have missed out on the big gains. But I see that certain experts (they've forgotten more than I'll ever know) have said that Royal Mail shares will soar above 600 pence each. I notice that they have peaked at 591.5p and now sit at 569p.

I know that if I were to buy now and they were to reach the magic 6 quid soon I would only show a profit of around 6%. But this is a much better return than the banks are offering at the moment. Should I invest a grand in this now and at least have a decent consolation prize?

Or should I wait until the government sell the rest of the shares? And when will this be?

Buying a single share is a high risk approach, you should aim to have maybe 20 well picked shares to have a balanced portfolio. Dont just look at the upside, there are often just as many downsides. Can you aford to lose 25, 50%>

Royal Mail may well run to 600, 700? im just urging caution in terms of balancing risk.

If you are happy with the risk and want to dabble, make your investment at a comfortable level.

For a newbie invester, funds are a safe bet, in fact looking at the UK Smaller company funds I think there is more upside than Royal Mail now, though soft closed (not taking new money) Fidelity UK Smaller Companies is up 80% in 18 months, many similar funds Cazenone, Standard Life, are up 50%+

Picking a good fund spreads your risk accross many companies, if one company in a fund tanks you have minimal exposure.

Pete268

westy22 wrote: »

CGT will only be payable if your total gains from sales of assets exceeds £10,900 in 2013-14.

You seem to have made about £551 profit on RM shares so well within the annual allowance.

Many thanks for that Westy22,

I have never had dealings with Shares or Capital Gains Tax before, so it's nice to know I can keep all the profit from these shares.

Thanks again.
Pete

trist86

Froggitt wrote: »

Not had any post since Thursday 6pm, so I assume the strike is already on......

lol just because you haven't had any post since Thursday doesn't mean the strike is on.

The strikes been called off 2 weeks ago, with new talks going on between CWU and Royal Mail.

jimjames

Pete268 wrote: »

Many thanks for that Westy22,

I have never had dealings with Shares or Capital Gains Tax before, so it's nice to know I can keep all the profit from these shares.

Thanks again.
Pete

If you have never owned shares before and have no other investments then you have been very lucky. Making big profits on a single share in days is not normal so please make sure you are aware of the risks if you are looking to reinvest your profits in other shares.

By the way if you buy inside an ISA you have no need to worry about CGT or income tax on share dividends.

Froggitt

jimjames wrote: »

By the way if you buy inside an ISA you have no need to worry about CGT or income tax on share dividends.

Some balance please - its sounding like a Daily mail article. A provider will generally charge (e.g. £50p.a.) for holding shares within an ISA.......aren't RM due to pay dividends in the order or £50 p.a.? And isn't tax at basic rate charged on dividends whether in an ISA or not? And you've gotta be very lucky, very rich, or very good (or a combination of all three) to make £10k capital gain per annum.