Financial Services > Investments > Tax on Investments > Tax Guide - Shares, Funds and Collectives

Tax Guide - Shares, Funds and Collectives

Shares

  • Dividends are paid to investors net of a tax credit of currently 10%. Taxpayers at the basic and lower rate will have no further tax to pay and non-taxpayers cannot reclaim this tax. Higher rate tax payers are then liable for another 22.5% in tax.

 

  • Capital growth on share holdings may be subject to capital gains tax if the amount of the gain exceeds the annual limits.

 

  • Stamp duty is charged at 0.5% on all purchases (although not sales) of UK shares.

 

The same rules apply to investment trusts and unit trusts as for shares however, the funds within the trusts are not subject to capital gains tax and dividends from UK shares are received with a 10% tax credit (then the trust has no further tax liability).

 

 

Any profits made from Financial Spread Betting are tax free under current legislation which is one of the reasons this type of investment is increasingly popular.

CFDs are also popular as you are not actually buying the underlying investment therefore they have no stamp duty liability.

The rules are not straightforward and your own circumstances and the rate of tax you pay should always be taken into account when choosing any investments. If you'd like more information, please complete our Quick Enquiry Form and we will arrange for a financial

Below are links relating to online share dealing:

www.Investments.co.uk has information on everything you need to know about making the most of your money. You can also visit us at Link: www.insurances.co.uk to get the best deals on your car insurance.

 

UK Investments - Financial, Property & Other Investments - 1998-2008

Investments Newsletter

Investments Newsletter