Shares in Lloyds, HSBC & RBS

Chris_Tibs

LHW99: Yes, the losses from a sale would reduce the taxable capital gain from the sale of the land, as we don't envisage making significant future capital gains. As half of the investments are in ISAs, and those losses not usable for tax purposes, we may decide to keep those and see what evolves.


Thank you for your help.
Chris

Chris_Tibs

inflationbuste: Yes, Brexit on top of it all is unnerving for the likes of us. You'll see from my earlier replies, that we'll wait and see what happens with the banking shares within the ISAs, but sell those outside the ISA - putting our toes in both waters.


Thank you for your help
Chris

Chris_Tibs

Hello AnotherJoe: As you'll now have seen from my earlier responses, 50% of the banking shares are in ISAs, and 50% are personally held shares, so we now understand the limitations, thank you. So I think in conclusion we'll hang onto the ISA shares and test the Brexit theories , and sell our own shares to offset the loss against part of the gains on the sale of the land.


Thank you for your input.

Thrugelmir

Chris_Tibs wrote: »

We don't know how to read the market: does anyone believe we're sitting on a future fortune? or should we sell the shares (losses currently totalling £8,000)?

What's the loss once dividends are taken into account. Total return is what matters. Likewise ongoing into the future banks should continue to pay a reasonable is unspectaculer dividend. Reinvesting the dividends is the key.

Chris_Tibs

Thrugelmir: Aah, I hadn't looked at it from that point of view, and I don't draw the same conclusions as a financier, so here are the best facts I have at my finger tips. Are you able to draw practical conclusions from my ramblings? (I'm afraid you may have inside knowledge which will tell you that my figures aren't as accurate as I'd like them to be):

• We acquired the shares in 2004 at a value of £4816 (not a vast sum, but we don't like to lose it)
• If my book-keeping's been accurate no divvies were paid from FY08/09 till FY15/16
• In Apr 2018, I'd noted the value of the shares to be £915 (19% of their 2004 value).
• and the last divvy I'd recorded was about £45 (4.9% of the Apr 2018 value of the shares).
• The CGT we'll have to pay on the land in FY18/19 will be at 20% (i.e. upper CGT rate for sale of unbuilt land)

To be honest, we've always cashed in the dividends, and I don't know how to interpret the above to guide us to taking a wise investment decision. You can tell we're not good investors, but we're happy to let ourselves be guided by those who are


Thank you so much for highlighting these points.
Chris

Thrugelmir

Based on the often quoted annual Barclays Equity Study. The compound return on UK equities over the past 118 years has averaged 5% (above inflation with no fees taken into account). However this figure includes reinvested dividends. In terms of capital growth the return is a more miserly average 0.5%. Speaks for itself really. Relying on growth alone is not enough.