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Thank you for your reply. This is the bit I was trying to grasp in my head. Ex div dates make no difference in making a winning strategy.
The only difference is how the dividend is treated for tax purposes.
Say you have a share you want to sell worth £110 which is about to go ex-div with a div of £10.
One way of another you will get £110 for your share.
If your sell before the ex-div date you will get £110 which will be your disposal price for CGT.
If you sell on or after the ex-div date you will get £100 which will be your disposal price for CGT and some time later £10 div which will be income for income tax.
The only difference is how the dividend is treated for tax purposes.
Say you have a share you want to sell worth £110 which is about to go ex-div with a div of £10.
One way of another you will get £110 for your share.
If your sell before the ex-div date you will get £110 which will be your disposal price for CGT.
If you sell on or after the ex-div date you will get £100 which will be your disposal price for CGT and some time later £10 div which will be income for income tax.
Thank you very much for this input. I never considered the implication of CGT against dividend tax. Your illustration is very clearly explained.
