We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Yes. This is why I did not want a dividend as pi’s get shafted with income tax. Much better a share buyback by the company. You can then decide to sell into any rise and just pay cgt rather than income tax.
I hope the rest of the company is not broken up in the same manner as it will leave me and other pi’s seriously out of pocket and unable to offset the losses.
@Broxburn68 - yeah Hargreaves told me they're Swiss registered which is why the 35% tax was taken. I was pointing it out because Ferrexpo have a UK address on the companies house website just like your Allied Minds link. So it looks like the UK registered address doesn't mean anything concerning divi payments. So I'm assuming they'll be some deduction from Allied as well. Surely the US will be wanting a piece of the pie!
Nice one for emailing the company. Please do post the reply. Much appreciated.
"if the dividend payment puts you above your Individual CGT threshold for the year"
Be careful giving tax advice if you don't fully understand. Dividend tax and CGT are two completely different taxes. Dividends are treated and taxed like income (not capital) and do not count towards your CGT allowance. You do, however, get a separate £2,000 annual dividend allowance. Any dividends received over that £2,000 allowance are taxed at a rate (38.1%, 32.5% or 7.5%) determined by your marginal tax rate.
There is a somewhat bizarre scenario where a long time holder of a large quantity of ALM shares selling them after the ex-dividend date could incur a massive capital loss (lets say they bought 100,000 shares at £3 and sell at 50p, in this case £250k capital loss) but would still have to pay tax on the dividend (100,000 * 12.62p = £12,620 = £10,620 taxable assuming no other dividends received in the same tax year....). The former cannot be used to offset the latter.
On further reading, I can't be so sure a withholding tax doesn't apply here too as the dividend payments may be decalared as have arisen in the USA (Boston based).
I've e-mailed the company on this question and will post their reply.
I think Ferrexpro are Swiss registetered, so there might be extra taxes? Best to check with the company for clarification.
@Broxburn68 -
Would you say that 'Ferrexpo' is a UK registered company? It has a UK address on companies house like Allied Minds. But still a 35% deduction of my dividend before it went into my ISA - https://beta.companieshouse.gov.uk/company/04914716
Allied Minds PLC is a UK registered company, so the dividend will be subject to normal UK dividend tax rates (2k tax free, 7.5% basic rate, 32.5% higher rate, nil if in ISA). You don't have to worry about withholding tax/ double tax relief, etc.
https://beta.companieshouse.gov.uk/company/08998697
yeah I saw that it was possible. But it was only £35, so i'll let it go. And I've learnt for future trades.
Google "reclaiming Swiss withholding tax".
I've never had to do it but it sounds a bureaucratic nightmare. Depending on how much you can reclaim, you may decide it's not worth it.
Cheers for this response Snaffle.
My tax query wasn't about CGT or Income etc. My investing is done through an ISA, so no worries there. It was whether anyone would know if America will take any of the dividend as the company is American. I received a dividend payment today from a Swiss company and 35% was deducted at source before I was paid. So was wondering if a similar situation might happen with Allied as they're not a UK company.
Better hold on to the shares until Monday morning then in case this article is correct!
Hi Luke, in the uk you are responsible for your own tax affairs and if the dividend payment puts you above your Individual CGT threshold for the year then its for you to declare it at the appropriate rate (unless inside an ISA then tax free).
Normally you can sell the shares when the market opens on the day the share goes ex-dividend if you want. You just need to be on the register pre- market of that day to qualify, however I agree this article is confusing. Personally speaking I’m hanging in for Federated Wireless and will re-invest most of the dividend so haven't looked too much at the details of it. GL
"(Alliance News) - Allied Minds PLC on Thursday declared a special dividend of 12.62 per share.
The intellectual property commercialisation business said the dividend is payable on February 14 to shareholders on the register at the close of business Friday next week. The last trading day with interim dividend rights is Thursday next week."
the link that was removed was a morning star article from the 16th January. "Allied Minds Declares Special Dividend Of 12.62 Pence Per Share"
Does anyone know if this dividend will be taxed before we get it? I've just discovered today that Swiss dividends are taxed at 35%, which was a bit of a shock.
Also, when exactly can we sell the shares and still qualify for the dividend? Normally you can sell them first thing on the ex dividend date, but this article seems to suggest that we still have to be holding at the end of Friday next week. So do we still have to be holding them on the following monday morning in effect? - https://www.morningstar.co.uk/uk/news/AN_1579197006079212500/allied-minds-declares-special-dividend-of-1262-pence-per-share.aspx
Thanks