CGT for joint account

joebob

Am i correct in assuming that because we have a joint account we can earn 4k of dividends before paying CGT

eskbanker

joebob wrote: »

Am i correct in assuming that because we have a joint account we can earn 4k of dividends before paying CGT

Dividends aren't related to CGT but are subject to income tax, so you'll need to clarify your situation in more detail before anyone can advise....

AnotherJoe

joebob wrote: »

Am i correct in assuming that because we have a joint account we can earn 4k of dividends before paying CGT

No, because you dont pay CGT on dividends.

joebob

To clarify i/we have recieved nearly 2k in dividend payments in the last 12 months. would we have to pay income tax on this when it exceeds 2k or 4k.

JGB1955

Depends upon who the dividends are payable to... having a joint account doesn't absolve you of your personal tax liability. I might have £5,000 of dividends paid into our joint account, my other half has nothing. I'm liable.

POPPYOSCAR

I am confused.

What do you mean by a joint account for dividends?

xylophone

CGT does not apply to dividend income.

Do you mean you have a fund/share account in joint names?

Or that you hold shares in joint names?

Or that each of you have funds/shares owned separately but the dividends are paid into a joint account?

bowlhead99

joebob wrote: »

To clarify i/we have recieved nearly 2k in dividend payments in the last 12 months. would we have to pay income tax on this when it exceeds 2k or 4k.

Do you mean I, or we? The £2k allowance for paying 0% on dividends is for each UK resident owning the shares which produced the income.

If you mean we, and the shares are jointly owned in a joint broker account (or you hold paper shares in joint names), then yes you could receive £4k between you from those shares, before each of you reach the level at which you've used up your £2k allowances.

If the shares are your shares, then the income is yours, even if you gift some of it to your other half by putting it in a joint bank account. In that case, if you have nearly received £2k of dividends in the last 12 months then you would be close to using up your £2k allowance if you continue at that rate on an ongoing basis. Of course, the 0% rate on the first £2k of dividend income is per tax year rather than per calendar year.

joebob

xylophone wrote: »

CGT does not apply to dividend income.

Do you mean you have a fund/share account in joint names?

Or that you hold shares in joint names?

Or that each of you have funds/shares owned separately but the dividends are paid into a joint account?

we have a trading account with ii in joint names.