Shares

whu

Thanks again - do you mean it will be a difficult calculation because you have to keep working out what you paid for each set of shares and then work out the profit on those shares when you sell?eg some were obtained in 2006,some in 2007 and now if I reinvest some will be 2008 - if so i suppose it wont matter if the CGT allowance is not reached?

cheerfulcat

do you mean it will be a difficult calculation because you have to keep working out what you paid for each set of shares and then work out the profit on those shares when you sell?

Yes, that's it.

if so i suppose it wont matter if the CGT allowance is not reached?

No, but you can't be sure that you won't eventually have more than that in realised profit. Anyway, I don't want to put you off re-investing, just alerting you to the possible extra work involved outside of an ISA.

whu

appreciate your comments - in this case the shares are only worth about £1250 and the dividends will only realise about 25 extra shares at about £2.40 each (although it could all add up if I buy other shares in the future)
I thought I read somewhere that the fact that the shares were given to me "free"(when Standard Life floated) I will not have to pay CGT on those shares if they reached the threshold - have you heard of this?
Finally,I have never bought S&S ISA's - if you get them and get a dividend and sell them and make a profit does it mean that you will pay no tax on dividends or CGT irrespective of profit level because you are in an ISA?

cheerfulcat

whu wrote: »

appreciate your comments - in this case the shares are only worth about £1250 and the dividends will only realise about 25 extra shares at about £2.40 each (although it could all add up if I buy other shares in the future)

Exactly!

I thought I read somewhere that the fact that the shares were given to me "free"(when Standard Life floated) I will not have to pay CGT on those shares if they reached the threshold - have you heard of this?

No, I haven't, but I would guess that that isn't correct.

Finally,I have never bought S&S ISA's - if you get them and get a dividend and sell them and make a profit does it mean that you will pay no tax on dividends or CGT irrespective of profit level because you are in an ISA?

Sort of. In an ISA there is no extra tax to pay on the dividend for a higher rate taxpayer, and, as you say, no CGT for anyone. However you are no longer able to claim back the tax credit on the dividend within an ISA.

whu

I think I have got it - in an ISA if you get a dividend they take off 10% as with non ISA shares but you cant claim it back (although you could before) but the advantage is you dont pay the 22.5% and you dont pay CGT on ISA share sales irrespective of gains.
Thanks a lot for your help.

cheerfulcat

That's it!