limits on shares

joebob

I have £9500 invested in my shares portfolio i am thinking of buying £5000 more. Is there a limit in value you can have before paying tax.

talexuser

If you are refering to ISAs as tax free wrappers, then the current limit per person is £15240. So if you have 9500 invested then can add £5740 before next April 5th.

joebob

talexuser wrote: »

If you are refering to ISAs as tax free wrappers, then the current limit per person is £15240. So if you have 9500 invested then can add £5740 before next April 5th.

no there not in an isa there in a trading account

Aretnap

talexuser wrote: »

If you are refering to ISAs as tax free wrappers, then the current limit per person is £15240. So if you have 9500 invested then can add £5740 before next April 5th.

...less anything you've subscribed to a cash ISA this year, of course.

If you buy shares outside an ISA then you're not taxed based on the amount you invest (beyond the 0.5% stamp duty) but on the amount you make from the shares. If the profits you make by selling shares in a given tax year are greater than the capital gains tax allowance (currently £11,100) you'll be charged capital gains tax. You'll also be taxed on any dividends you receive from them - though you only need to worry about this if you're a higher rate taxpayer, as the tax due for basic rate taxpayers is deducted at source.

dunstonh

Why are you not using an ISA?

Nowadays there is rarely any charge difference (and if there is, then its time to shop around). It just makes the whole thing a lot easier.

joebob

dunstonh wrote: »

Why are you not using an ISA?

Nowadays there is rarely any charge difference (and if there is, then its time to shop around). It just makes the whole thing a lot easier.

got a cash isa with newcastle.

dunstonh

joebob wrote: »

got a cash isa with newcastle.

So, you are putting £15,240 a year into that cash ISA?

joebob

dunstonh wrote: »

So, you are putting £15,240 a year into that cash ISA?

yes i will have by the end of the year

dunstonh

In which case, you may want to consider using some of your allowance in a S&S ISA then as you can do better with a normal savings account a lot of the time.

kidmugsy

joebob wrote: »

I have £9500 invested in my shares portfolio i am thinking of buying £5000 more. Is there a limit in value you can have before paying tax.

You have to report your dividend income to hmrc. If to puts you into the higher rate tax band then you'll have extra income tax to pay. And if not, not.

I can't tell you anything about the detail of the tax because any shares we've held we've always held in ISAs.

Atreyu107

dunstonh wrote: »

In which case, you may want to consider using some of your allowance in a S&S ISA then as you can do better with a normal savings account a lot of the time.

Absolutely agree with Dunstonh, with interest rates as they are you'll be earning a paltry sum in a Cash ISA.

If I was a conservative investor, I'd probably consider a blue-chip Unit Trust (i.e. give my money to a fund manager who would invest it in large-cap FTSE100 companies). If you don't want to pay a fund manager to do it, you could invest in a passive Exchange-Traded-Fund (ETF) that tracks a particular index. I'd even consider corporate bonds which are paying interest at around 5%.

Of course there is always a risk that your investments may fall, but over time they are far more likely to outperform interest rates.