Shares Tax

uk_steve

Ok here is my postion


i am a none tax payer due to disabilty and dont work (i have savings which earns around the £5.1 k intrest which is tax free per year

i have my cash isa (tax free)

i have started to get premium bonds again (tax free)


and thats my normal savings i do

i dont have no mortgage and my outgoing are very low..

anyway after setting up my 1st shares account and funded it now.. its just dawned on me i meight be doing a big boo boo? reason being if i bought shares and sold them on at a profit.. it puts me over the allownce which i am allowed to earn tax free per year because i have savings which is doing that allready..

have i got this right? if so? what else can i do with my money?

ps
i dont have stocks and shares isa


sorry i am slower then most on here, but i do learn quickly what i do, once pointed out to me!
thanks

gt94sss2

uk_steve wrote: »

anyway after setting up my 1st shares account and funded it now.. its just dawned on me i meight be doing a big boo boo? reason being if i bought shares and sold them on at a profit.. it puts me over the allownce which i am allowed to earn tax free per year because i have savings which is doing that allready..

If you get dividends from shares you own - that will count towards your income tax allowance - just like your bank interest does

However, Capital Gains won't affect you unless you realise over £9,200 in gains/tax year.

Regards
Sunil

uk_steve

thank you i understand that


thanks once again:beer:

Aegis

Well, if you don't have a stocks and shares ISA you can buy up to £4000 in shares for a mini S&S ISA and up to £7000 for a maxi. Of course, you can only get the maxi if you haven't subscribed to a mini this year, but I felt I'd mention it anyway.

Within a S&S ISA, you are exempt from CGT and any further income tax liability from dividend payments, so you should be able to trade without worrying about the income levels. You don't even have to declare your ISAs on a self-assessed tax form, if I remember my rules correctly.

Of course, if you're new to shares, you might want to look at collective investments as an alternative, as they invest in a far more diverse portfolio than you could realistically achieve with either £4k or £7k.

uk_steve

Thank you i see what you saying

(i have stopped my limit trade today on the n r shares and a + l)


looks like i best go for the s+s isa (collective portfolio) i can do 4k mini beacuse i done my 3k cash allowance allready this year.. then i am 100% ok with the tax man


i may be asking the obvious here? is there a ready made package to buy personly?

or do i simply just go to a bank and get one from them?


i know there rates aint grate but i spoke to NS and I today about my situation
i can put another 30k in 2 and 5 years Fixed Interest Savings Certificates 15k in each one tax free
i can put another 30k in 2 and 5 years Index-linked Savings Certificates 15k in each one tax free


I have money setting in accounts since 2005 with a silly intrest rate of 0.5% because i didnt want to go over the tax allowance each year with my main bank saving accounts

its a shame i didnt act quickly enough about this because another 30k would of made a bit of money this year in 2007

Aegis

Definitely don't go to a bank. While that might be the easiest option, they will charge you more for less than you'd get elsewhere.

Hargreaves-Lansdown (www.h-l.co.uk) can set you up with a Stocks and Shares mini ISA with no charge for just having the account, minimal or no charges for buying units in collective investments, reduced annual management fees for those funds, and access to (as far as I can tell) the whole market of funds available to individual investors.

They're not the best for shares, as their dealing costs there are considerably mroe expensive than some, but I doubt they can easily be beaten for funds as long as you're happy with an execution-only service (i.e. you make all the decisions, they just buy/sell for you)

uk_steve

thank you


I have a look at there site now;)

Sandy_Beech

bank no no no