Jump to content
DOSBODS
  • Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

Recommended Posts

9 hours ago, Wight Flight said:

I asked a while ago about the flightless getting in to the stock market.

It seems, without any help from me, that he is doing ok.

He has asked if he has to pay tax on what he makes. I know very little about this. Any advice, or should he get an accountant?

Any dividends received are taxable income. https://www.gov.uk/tax-on-dividends.

CGT is payable on gains made when shares are sold.

I doubt there is a need to use an accountant, completing a tax return is quite straightforward. It is unlikely that an investor in the stock market will have any allowable expenses for such investments.

Link to post
Share on other sites

Actually I would be using an ISA anyway so that it's all tax free.

There is no penalty for taking it out again so if he's saving up for something then the cash isn't being tied up as it would be with a SIPP or pension.

The downside is that there are fees but a quick calculation would show if these are less then tax payable or just sufficiently low that there isn't an issue.

Link to post
Share on other sites
6 hours ago, Frank Hovis said:

The CGT annual allowance is £12,300.

If he's even approaching this then I would be very impressed.

If he thinks he's likely to then he should be trading within an ISA where it's all exempt. You can put £20k in each tax year.

 

https://www.gov.uk/capital-gains-tax/rates

Quite surprisingly he has already made just shy of £5k in his first three months.

I didn't think he would achieve anything like that so didn't really consider the tax implications.

Will get him to look in to setting up an ISA I think.

 

Link to post
Share on other sites
44 minutes ago, Wight Flight said:

Quite surprisingly he has already made just shy of £5k in his first three months.

I didn't think he would achieve anything like that so didn't really consider the tax implications.

Will get him to look in to setting up an ISA I think.

 

With that performance, get him on the legendary thread above!

Link to post
Share on other sites
5 hours ago, Chewing Grass said:

Just remember 5 months ago was bottom of the market, some folks had lost nigh on 20% and the subsequent growth is not representative of future performance.

“Difficult to see. Always in motion is the future.” – Yoda

Agreed. I fully expect him to lose it all.

Will be interesting to see how the next few months go.

Link to post
Share on other sites
19 minutes ago, Wight Flight said:

Agreed. I fully expect him to lose it all.

Will be interesting to see how the next few months go.

Instruct him to cash in now?

At 18/19, he has no experience of markets. Therefore he is likely to double down.

Also, what did he start with? If 5k, a doubling is an excellent result and needs to be locked in. If 100k (unlikely), that is rather different.

Link to post
Share on other sites
1 hour ago, Knickerless Turgid said:

Instruct him to cash in now?

At 18/19, he has no experience of markets. Therefore he is likely to double down.

Also, what did he start with? If 5k, a doubling is an excellent result and needs to be locked in. If 100k (unlikely), that is rather different.

He started with £5k.

He has moved some of his gains to blue chip and set a stop loss.

Being a student he has feck all to do apart from study this stuff full time.

As I see it, it is a very useful learning experience (or an expensive hobby if he loses it all)

 

 

 

Link to post
Share on other sites
On 21/11/2020 at 19:03, Knickerless Turgid said:

Instruct him to cash in now?

At 18/19, he has no experience of markets. Therefore he is likely to double down.

Also, what did he start with? If 5k, a doubling is an excellent result and needs to be locked in. If 100k (unlikely), that is rather different.

He decided to cash out this evening.

Made enough to cover next year's rent, but does understand he was lucky.

Will be interesting to see what he picks next.

Link to post
Share on other sites
15 hours ago, Wight Flight said:

He decided to cash out this evening.

Made enough to cover next year's rent, but does understand he was lucky.

Will be interesting to see what he picks next.

 

 

He's done well there.

When I was at college there were regular stories, this being post Big Bang so any could now easily buy and sell shares, of students using their grant to speculate on the stock market and absolutely raking it in; they couldn't lose.  Fortunately with my spare cash of about twenty quid I wasn't tempted.

Then there was a big crash, IIRC coinciding with 87J the October 1987 windstorm though not caused by it, and all gains were wiped out as well as much of their starting capital.

There is no such thing as "can't lose" as I was to find out a few years later with the Eurotunnel shares that were going to make me rich.

 

Link to post
Share on other sites
13 minutes ago, Frank Hovis said:

 

 

He's done well there.

When I was at college there were regular stories, this being post Big Bang so any could now easily buy and sell shares, of students using their grant to speculate on the stock market and absolutely raking it in; they couldn't lose.  Fortunately with my spare cash of about twenty quid I wasn't tempted.

Then there was a big crash, IIRC coinciding with 87J the October 1987 windstorm though not caused by it, and all gains were wiped out as well as much of their starting capital.

There is no such thing as "can't lose" as I was to find out a few years later with the Eurotunnel shares that were going to make me rich.

 

It wasn't his grant - he isn't that stupid.

It was his Navy Bursary - in effect his flash money. He could at least afford to lose it.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...