A recent article on The Times website discusses ‘[the] three main taxes you need to watch
out for when buying and selling shares…’
At the risk of spoiling it for you, (link at the bottom if you want to read the full article), it is
somewhat simplistic in its approach. It addresses the basic questions such as what the taxes
are (Stamp Duty, Dividend Tax and Capital Gains Tax) and even goes so far as explaining
‘What is a share?’…
But let’s not be too hard on The Times as it is often having a grasp of the basic principles of
taxation which can have the greatest impact on investment returns.
For instance, you may already realise that an ISA can be a very tax efficient way of holding
collective investments.
However, what if you’ve already utilised your ISA allowance, what then?
Perhaps you have your eye on a particular fund but is it better to invest within in a bond or
within an OEIC?
You might be surprised to know that the tax treatment of the two is significantly different
and the wrong choice could mean you are thousands of pounds worse off.
Of course, the devil is in the detail and you need to make sure you speak to someone you trust.
1 https://www.thetimes.co.uk/money-mentor/article/tax-shares/
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