Halifax share dealing query

enthusiasticsaver

My investment platform is Halifax Share Dealing Services. If I invest in a monthly income fund (Artemis Monthly Distribution Income) how does the income get paid? Does it go into my share dealing account in cash to be withdrawn to my bank current account every month or does it automatically go to my bank account?

I made the transaction this morning (over the phone rather than online as an error code kept coming up) but the dealer never mentioned how the income would be paid.

Eco_Miser

You choose how dividends are to be dealt with, but the choice applies to all holdings, so the question wouldn't be asked when buying a fund.

enthusiasticsaver

Eco_Miser wrote: »

You choose how dividends are to be dealt with, but the choice applies to all holdings, so the question wouldn't be asked when buying a fund.

Thanks so presumably it must be on my settings somewhere then. I have only bought accumulation funds prior to this.

EdSwippet

enthusiasticsaver wrote: »

Thanks so presumably it must be on my settings somewhere then.

The Account Management -> Dividend Options tab?

enthusiasticsaver

Yes, I have found it so thanks for that.

longleggedhair

From memory you can either choose:

Reinventment
Pay away immediately/6 monthly
Hold in account

green_man

I always hold all my dividends in the account it is then available for reinvestment or paying out to my bank account on an ad hoc basis, as my account is an ISA this has the benefit of keeping the dividends within the ISA and hence them not counting in the yearly ISA allowance YMMV.

dales1

Yes, for an ISA, I would opt to either hold the dividends within the ISA as cash, or more likely I would opt to auto-reinvest them where they came from in the ISA at the Halifax fee of 2 % (max £12.50). This keeps the money in the tax-free wrapper.
(But NB a small uninvested cash balance does build up when the dividend isn't an exact multiple of the reinvested share price).

On the other hand, for my Share Dealing account, I opt to have my dividends paid away immediately to my own bank account. I can then reinvest these where I choose, and the CGT calculations (outside the ISA wrapper) are much easier without a series of quarterly trivial purchases. The dividends, appearing on my bank statement, also prompt me to put them on my tax return papers (whereas this is not necessary for dividends in ISAs).

Dales.