CGT for joint account
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joebob
Posts: 454 Forumite
Am i correct in assuming that because we have a joint account we can earn 4k of dividends before paying CGT
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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.0
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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.#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3660
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I am confused.
What do you mean by a joint account for dividends?0 -
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?0 -
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.
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.0 -
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.0
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