Member Info for johnson36

longtimeinvestor

Exactly. Look how many people sold Builders at the lows last year (not me I was buying). Now all the builders have risen considerably all the buy ratings are coming in. I think to many Pi's buy at near the top and sell somewhere near the bottom.

volcano

It would be hard to fail over the longterm sticking with mainsteam shares. I don't touch AIM within my ISA, everything in my ISA earns a dividend. £15k divis for 2019/20, all reinvested of course along with another £20k allowance. I predict I will get at least £24k dividends in 2024, these would all be reinvested with the years allowance also. I have 10 different shares in ISA so it is not a case of all my eggs in 1 basket, when some SP's go down others go up and in the meantime they all pay dividends.

Tranter

Sorry I realise now it was aimed at StrollerB

Tranter

Was your post aimed at me ?

Damper

in 1987 you were only allowed to put £2400 into a PEP, we are now allowed to put £20,000 in to the share ISA. If this allowance continues it is not difficult to get a worthwile amount together that is free from any taxes

Damper

I have 2 accounts, my ISA which is for long term and my normal account which is for trading. I will continue to invest the full allowance into my ISA for many more years and reinvest all dividends. In my normal account i take profits when i can. I don't buy any shares that don't pay dividends. I have in the past been locked into a share at a loss with no dividends to look forward to, I don't do it now. My accounts are with HSBC, the best share account by far. Nothing else comes close.

Damper

LOL,

That is a very negative way of looking at share dealing. Maybe it is not for you.

On a postive note you don't pay any income tax, dividend tax or capital gains tax on an ISA. Think about the Share ISA millionaries, no Tax to pay on Dividends and nothing to pay on capital gains. At any time they can tax the whole lot out without taxes unlike a pension.

ToffAppleton1

Yes I am.
Are you just looking at share prices without taking into account Dividends. Ive put full payments into an ISA every year since 2012, £128k, now worth £200k. I admit that is not amazing but the compounding affect is only just starting to get going now the numbers are getting bigger, £15k in Dividends gone in this tax year 2019/20. The ISA allowance is currently £20k but remember back in 2012 we could on put in £11280, 2013 - £11520, 2014 - £15000, 2015 - £15249, so in the first 4 years I was only able to invest £53040 in my ISA.

I don't like buy backs. It is supposed to increase the value of shares because you own a slightly higher % of the company. But you can't spend that increase in value without selling some shares. Where as a dividend is a separate amount of cash that you can spend as you wish without reducing the amount of shares you own. If you buy a house to rent out you do it for the monthly income and not just the capital gain. I do same with shares.

Any ideas why we got a large drop in SP yesterday and below 230p in early trading this morning ?

No too bad. Will be back above 600p soon. Ex divi next week approx 16p

Adjusted revenue up 5.9% to $55.4bn and adjusted profit before tax up 5% to $22.2bn, reflecting good revenue growth in Retail Banking and Wealth Management ('RBWM'), Global Private Banking ('GPB') and CMB, together with improved cost control.

• Adjusted revenue in Asia up 7% to $30.5bn and adjusted profit before tax up 6% to $18.6bn. Within this, there was a resilient performance by Hong Kong, with adjusted profit before tax up 5% to $12.1bn.

560p / 570p

https://www-bbc-co-uk.cdn.ampproject.org/v/s/www.bbc.co.uk/news/amp/business-51499776?amp_js_v=a3&_gsa=1&usqp=mq331AQCKAE%3D#referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s

T

I've been doing the same thing regarding ISA, paid full payments in every April since 2012. Once you start to get a worthwhile amount in ISA it feels great. Remember in 2012 we could only put £11280 in, can't really do much with that. My 1st 4 years payments only totalled £53040. It has only been the 2 yrs payments that have been £20,000. Now it's starting to look good. £15k dividends for 19/20yr + all profits stay in account. I hope they keep the allowance at £20k for many more years. The compounding effect really starts to work once the numbers get bigger.

Have a Great weekend Mt T and other members
I'm off out for a few Beers after 10.00pm.

T

Something has come clear to me now. When you talk about leaving £100,000 you don't mean cash you mean in the actual shares, I get that now.
Of course you don't pay CGT on paper profit that are not yet realized. However now I understand what you are trying to say I know now it is wrong.
If you bought put £100,000 in to 100,000 shares at £1 each and they increase in value to £2 and then you decide to take your original £100,000 out then what you are doing is selling 50,000 shares at £2 per share , hence you are getting back £50,000 original money and £50,000 profit which would be subject to CGT. You can't choose which bit of money you are taking out. To get half the money back you obviously sell half the shares, the rest of the shares remain in the account.

If I enter a 100,000 share buy @ £1 followed by a 50,000 sell @ £2 into CGT calculator now what will it show ? a £50,000 profit and 50,000 shares remaing on the account each costing £1.
I have just tested it on spreadsheet and CGT calculator and that is exactey what happens

1. SELL: 50000 TEST SHARE on 15/02/2020 at £2.00 gives GAIN of £50,000.00
Matches with:
BUY: SECTION 104 HOLDING. 50000 TEST SHARE shares of 100000 bought at average price of £1.00
CALCULATION: Gain = £50,000.00 = ( 50000 * 2.00 - 0.00 )
- ( 100000 * 1.00 ) * ( 50000 / 100000 )

INFO FOR TAX RETURN
19-20: Disposal Proceeds = £100,000.00 , Allowable Costs = £50,000.00 , Disposals = 1
19-20: Year Gains = £50,000.00 Year Losses = £0.00

T

Are you saying that GCT is only due on deals if you take all the money out ? I haven't taken any money at all out of my investment account for years but I still have to record on a spreadsheet every buy and sell. At the end of year if it shows a profit over £12k then CGT tax is due and I haven't taken any funds out. I still don't understand what diffence you say it makes by leaving that money in the share account.

TomE
And the profit is £50 so is still chargeable for CGT, you can take it out or leave it in it makes no difference. The deal has been done and the deal shows a £50 profit.

TomE

It's not clear. Are you saying that you can buy £100K worth of shares then sell them for £200k and not pay tax on £88k because you are not taking more than the original £100k out of the account. HMRC don't care where you leave the money, a profit is a profit and CGT is due on anything over £12k, ie: they want tax on £88k

WiganWarriors

I found a way round the Rule to show losses and keep shares but you need extra money.

For example you have 10,000 shares that cost you £2 each sometime ago but are now only worth £1. So what you do is buy 10,000 more at £1 and now you have a bigger 104 holding of 20,000 shares costing £1.50 each. So you have to wait till the next morning to avoid the "Same Day" rule and then you sell 10,000 shares for £1 each and are able to show a loss of £5000. You would only do this if you had Tax due to pay. This would reduce your profits by £5000 and save you the tax on that. All it costs is a 2 deally fees (£15.90 for me) and stamp duty of £50 on £10,000. This proccess can be repeated again but need to wait 31 days to avoid the 30 day rule. When doing it next time the remaining 10,000 are now at £1.50 in the section 104 holding so buying 10,000 more at a £1 will only show a loss of £2500 when selling the following moring. Anyone can test by making up a dummy spreadsheet and pasting it into the calculator, it is working within the HMRC. rules