100% Dividend Taxation

MalcolmSm1th

Junior member
11 0
The other day my wife received an eMail from her online broker, where she has her ISA that I am looking after

The eMail told her that she's received a dividend from Ladbrokes

"What's that?", she asked. So I explained

"And so where's it gone?"
"Back into the ISA"
"You mean back into the betting pot?" As she likes to call it
"Yes, if you like. It's being re-invested."
"Oh", she says crestfallen
"Do I detect that you'd rather have the funds yourself?"
"Does the Pope...?"

So, today I transferred the dvidend payment out of the account into the wife's personal account. Now I am going to concentrate, for her ISA at least, on purely growth shares which don't return dividends...
 
M

member275544

0 0
The other day my wife received an eMail from her online broker, where she has her ISA that I am looking after

The eMail told her that she's received a dividend from Ladbrokes

"What's that?", she asked. So I explained

"And so where's it gone?"
"Back into the ISA"
"You mean back into the betting pot?" As she likes to call it
"Yes, if you like. It's being re-invested."
"Oh", she says crestfallen
"Do I detect that you'd rather have the funds yourself?"
"Does the Pope...?"

So, today I transferred the dvidend payment out of the account into the wife's personal account. Now I am going to concentrate, for her ISA at least, on purely growth shares which don't return dividends...

There's an oxymoron...its often the dividends that attract the investor and hence the potential growth of its share price. You take away dividends, what's going to happen to the share price?
Why not take profits just prior to dividend..reinvest elsewhere.
This way you might also avoid any unnecessary non-activity charges..gotta hate that. [email protected]
 
 
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