REITS- tax position

moneylover

I am considering British Land. However I don't quite understand the tax position. Is the dividend on a REIT paid gross and then needs to be declared on a tax return?
I don't tend to put shares into my ISA because am a lower rate tax payer and just do not envisage a capital gains tax problem, so why pay HL .5% to manage shares in an iSA for me. However I would feel differently about REITS if I had to do a tax return and pay the tax (I don't get asked for tax return at present nor have need for one)
As a secondary question, when the prospective divi for British Land is shown at 4.7% is that gross? I presume it is if divis are paid free of tax.
Many thanks

xylophone

http://www.britishland.com/about-us/our-business/reits-and-british-land.aspx

http://www.britishland.com/investors/dividends/reits-and-uk-tax.aspx
http://www.hmrc.gov.uk/manuals/saimmanual/saim5310.htm

FatherAbraham

moneylover wrote: »

I don't tend to put shares into my ISA because am a lower rate tax payer and just do not envisage a capital gains tax problem, so why pay HL .5% to manage shares in an iSA for me.

Why would you pay a broker 0.5% for an ISA?

Halifax Sharedealing charges £12.50 a year for a trading ISA.

Warmest regards,
FA

Middle_Class_Angst

FatherAbraham wrote: »

Why would you pay a broker 0.5% for an ISA?

Halifax Sharedealing charges £12.50 a year for a trading ISA.

Warmest regards,
FA

Or then again, why pay £12.50 a year when you can get it for free at X-O?

You pays your money and you take your choice.:)

moneylover

yes, I use x-o for shares they are v good, will think about moving ISA its mostly retail bonds, does x-o trade in those I wonder. I usually buy them free of charge at HL when newly issued.

Ifts

Just so you know there is a small charge (think its £50) to close a S&S ISA with X-O.

moneylover

cant imagine closing my ISA though, I guard it zealously!

Ifts

That is true, though it applies to both closing/transferring it to a new provider. Its only £50+vat (X-O charges) not the end of the world.

What can I invest in?
You can invest in a wide range of ISA eligible products including UK listed shares, Gilts, Bonds, Exchange Traded Funds, Investment Trusts, shares listed on the IRS (International Retail Service) and CDIs of US stocks.

http://www.x-o.co.uk/isa-information.htm

If you do go with X-O for your S&S ISA do check with them that they let you trade retail bonds.

Stanley_St

Ifts wrote: »

If you do go with X-O for your S&S ISA do check with them that they let you trade retail bonds.

I have retail bonds in my X-O S&S ISA.

My only gripe is that they tend not to handle new issues of retail bonds (though they do offer the occasional new share issues).

The last couple of times I have bought the retail bond new issue into my HL S&S ISA (otherwise used only for passive funds), and then transfered them across to X-O afterwards to avoid the 0.5% fee (though HL will charge per line for transferring out).

Sometimes a bit of extra work needed to be a money saver...

moneylover

Stanley_St wrote: »

I have retail bonds in my X-O S&S ISA.

My only gripe is that they tend not to handle new issues of retail bonds (though they do offer the occasional new share issues).

The last couple of times I have bought the retail bond new issue into my HL S&S ISA (otherwise used only for passive funds), and then transfered them across to X-O afterwards to avoid the 0.5% fee (though HL will charge per line for transferring out).

Sometimes a bit of extra work needed to be a money saver...

Thank you. I really rate X-O. I always use them for share purchases and recently they have had the new issues I have wanted to buy, where they don't I just buy direct from the issuers and then post my paper certificate to X-O who make no charge for the transfer. However my retail bonds are in H-L ISA because of buying without charge through them. How much do you get charged per line for transferring out?
I do agree, its work being a money saver - however it reaps returns, am still working through my first and second class stamps bought before the last price increase!

Stanley_St

moneylover wrote: »

Thank you. I really rate X-O. I always use them for share purchases and recently they have had the new issues I have wanted to buy, where they don't I just buy direct from the issuers and then post my paper certificate to X-O who make no charge for the transfer. However my retail bonds are in H-L ISA because of buying without charge through them. How much do you get charged per line for transferring out?

HL charge £25 per line for transferring out to another provider. This fee doesnt need to come out of the ISA but can be paid separately.

It depends on how big the holding and how long it is going to be kept, but in my case it has been worth transferring retail bonds from HL to X-O accounts.

At the moment I would look to buy new issues of retail bonds from HL and then transfer them across to X-O as soon as possible. Once HL announce their new pricing structure, I may want to transfer out the other holdings in my HL S&S ISA. At that point I shall be on the look out for another broker who handles retail bond new issues. iii served me well with this in the past, but I jumped ship when they changed their fee structure.