There are different levels of tax and allowances on working or pensions income, property income and cash savings. There is also a different tax regime for shares and share based investments. We are not talking about stock ISAs as they are usually tax free but directly held shares and share based investment such as Unit Trusts, Investment Trusts, Open Ended Investment Companies (OEICs) and General Investment Accounts (GIAs).
Shares and share based investments usually distribute profits of the company or investment fund via dividends and you make a profit/gain when you sell.
Income Taxes on Share Dividends
There is no income tax to pay if the dividends you receive are within any unused Personal Tax Allowance.
If you have used up some or all your personal tax allowance and when dividend income is added to your income, it is above the personal tax allowance then income tax may be payable as follows:
If dividends are
Total dividends below £10,000 pa: HMRC will allow you to settle via Self Assessment or you can contact them and ask for your Tax Code (personal tax allowance) to be adjusted.
Total dividends above £10,000 pa: HMRC will only allow you to settle via Self Assessment and you must register for self assessment if you have not already done so.
Capital Gains Taxes
Our Fees:
Capital Gains Tax as part of Self Assessment (for shares) CGT Non UK Property
Capital Gains Tax for Residential Property CGT UK Property
Other useful links:
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