Investing in funds - INC or ACC

kempiejon

poseidon1 said:

kempiejon said:

MX5huggy said:

kempiejon said:

Eek, thanks. I will have to sell some dividend payers quick!

It was £500 in 24/25 as well. 

I am surprised I'd not clocked it. I'd been selling down since the announced change in dividend treatment so most of my unsheltered dividend shares are long gone but I stopped selling as I was well within the £1k limit with only a few hundred a year in dividend income but a bit of growth and that lower limit might make this year a bit close.

Excuse my confusion, but if your dividend stocks have been doing a good all round job for you, why sell for the sake of a small 8.75% income tax liabilty ( assuming you are a basic rate tax payer).

I find it baffling when people restrain themselves from generating better investment/ income returns  solely because HMRC takes a slice of the return. Until you get to point where HMRC takes more than you do from an investment, surely a net of tax return is better than nothing at all, or am I being perverse?

Sorry bit ambiguous I still have dividend stocks for income, now sheltered no liability. Part of annual tax planning to sell unsheltered holdings to bank gains and fill new ssISA & SIPP. I chose to pick income stocks for few years rather than gains.