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CGT is a ‘personal’ tax as I understand it. If we were dealing with a UK Limited Company, my understanding would be that a gain made by the company, within the company, would have implications under Corporation Tax, before proceeds were paid to shareholders as a dividend and taxed accordingly. Obviously the structure of the company is not UK based but it is still a company and I don’t see how the proceeds could be paid out via an actual increase in share value - it would be a case, as you say, of a dividend and this would presumably represent a sum due in respect of each share, but the value would be the dividend payment and not the actual share changing in value.
I have never heard of a corporate event automatically triggering a personal CGT liability. I do know from experience CGT isn’t always the default tax one may expect it to be. I have mainly paid CGT when selling property (excluding main home) but I have also paid income tax on the gain on a couple of occasions - the reason being relatively short ownership and an intention to increase value by improvement making it a trading scenario rather than the more passive holding for investment purposes that triggers CGT (the properties were all personally owned not limited company).
Yes, that is well above Rishi’s effective tax rate of 22% on several millions. Restoring the ISA status would be very beneficial if it were possible.
Much talk of CGT but if this materialises, is it not effectively a dividend? I am not an expert but have been in the CGT net at various times going back 30+ years with businesses, property and occasionally shares. To be liable for CGT you have to sell something at a greater price than you bought it for. You have complete control over when you sell- Hunt has spoiled the tax free allowance now, halved and then down to a relative pittance next year, but theoretically if you spread sales over enough years to only use the tax free allowance, no tax would be payable. Dividend payments are a completely different ball game, you are paid x amount in a given tax year with a modest tax free dividend allowance and there is no control over the tax due. It’s years since I received any dividend income, I seem to to recall there is additional tax due depending on what income tax bracket you are in (or will be in taking into account the dividend on top of other earnings).
Unbelievable that FTSE12, can't grasp that not only will someone age 23+ working 35 hours a week get a pay rise of over £1000 a year come April due to the 'minimum wage' increase, they will also keep ALL of their income up to £12500 free of any deduction, the NI threshold is worth a lot more than pennies. Add to that they are probably living at home and not running a car so energy and fuel prices won't be a concern. Not guaranteed to restore the share price of course, but let's not talk utter twaddle for the sake of it.
law007lu. A companies share price on its own is meaningless without rega to shares in issue. For example boohoo could consolidate its share issue by cancelling the existing and issuing one new share for each ten held (or ASOS could do a split, ten new shares for one old). Nothing about the fundamentals would change but your calculations would be wildly altered by the resulting changes to the share prices.
Turnover on its own is also misleading, if a company was selling goods at cost price then it is likely they would gain a fantastic share if the market. Hence the saying; Turnover is Vanity, Profit is Sanity. (I'm not directing that at Boo or ASOS)
A solid comparison would be comparing the Price/Earnings Ratios of competing companies. That is the share price divided by the earnings per share. It is the 'per share' part that is vital and your comparison ignores.
Looks like some are unfamiliar with Management Accounting and also likely never to have owned their own business and engaged a 'high street' accountant, where there is always a forward looking aspect for advice to maximize tax efficiency as well as presenting the past in the most favourable form for the client.
You've hit the nail on the head regarding varying conditions and their suitability for fully autonomous driving garrym79. Around 2015 all the car companies were promising to have autonomous vehicles operating on UK roads as of now, but all we have in reality is a few 'driver aids' that are of questionable value. Presumably this is because what is technically possible and the real world situation, such as a single track rural road with few passing places, in fog, with the cars cameras and sensors slathered in mud, don't match up.
The fact that one of the biggest achievements of the technology seems to be that it can keep you in a given lane sums it up for me... great for the USA where picking a lane and sitting in it for miles is permitted, but in the UK that is lane hogging, something we could do with less and not adding to with those trying to show how clever their new car is.
Can't myself see the rationale behind widespread very high amperage home charging. Obviously the wealthy would be potential customers but part of the 'greenness' of home charging is doing it overnight on off peak where time isn't particularly material. Charging at amperage levels that reduce charging times to sub 20 minutes lends itself to charging stations with shops, coffee shops etc which are beginning to appear. There is bound to be some demand management by tariff structure in the future and I'd expect options for those with flexibility doing low mileage to have beneficial tariffs that allowed power to feed from the car back to the grid at peak times.
Rather academic for me, my motoring choices will never get me on Greta's Christmas card list for many years to come.
Villa01, those in government setting arbitrary targets have no concept of the practicalities. I think they've dropped the more egregious recommendations now, but some of the reccommendations on early household Energy Performance Certificates were hilarious, several thousand pound micro wind turbines to save twenty quid a year - with no thought to potential maintenance and lifespan.
rafafa, all I can say is, I followed this board from 2015 without using the filter. After a couple of months on the Aim clothing company bb with a sp currently more 200x here I had to resort to it - for inane and disingenuous posters in both directions. A recent record was a dozen green boxes stacked on top of each other.
rafafa, Aim shares will be attractive to day traders as no stamp duty. Do you have any evidence that other Aim shares such as boohoo at around £3 or ASOS at £50 are hardly daytraded? It's certainly not the consensus on the BOO board! 5% of five grand invested, or whatever, is just that whatever the actual number of shares or their individual cost.
Irrespective of the amount of shares, exercise of options can't be called a cash raise, the options are disclosed when originally granted and assuming they are 'in the money' of course they will be taken up at some point. So krisnew, you haven't predicted anything and you have a hopeless grasp of numbers to boot.
Just had another look a BBC 'red button' business news. Boohoo has slipped down the list now, above us - Penguin books are keeping furlough cash despite record sales and Amazon 'illegally retaliated' against climate activists. Anyone going to boycott them?..... thought not.