Gsk Share Discussion Threads

[alphorn] 10/8/2016 11:12

Fangorn - very easy for FTSE100 shares. You can check prices on the drop down header 'Forex'.
I have been using options now for over 15yrs without major hiccup. The yield boost can be very helpful.

[fangorn2] 10/8/2016 11:07

@Alphorn.

How easy is it to engage in covered calls UK stock side out of interest - would be blue chips only.

I gather it's very easy via TD Ameritrqade for example, on the likes of the pfizer,Exxon,JnJ, altria...often able to do it online off own portfolio holdings.

Cheers

[alphorn] 10/8/2016 09:54

Without opening a huge debate - what risk in particular? I am addressing covered calls btw.

[tradermichael] 10/8/2016 09:46

Without wanting to be being contraversial (again), the opportunity to boost yield by trading options is accompanied by a higher risk that I am not happy to take with this kind of money.

[alphorn] 10/8/2016 09:36

TM - why don't you write call options against your holdings to boost yield?

[tradermichael] 10/8/2016 09:34

Plan: if the price drops significantly this afternoon, then buy back today and receive the 19p dividend tomorrow.
If the price eases back, then place a trade over night with a limit of closing price less 19p, anticipating an equal drop at opening as it goes ex dividend.

[tradermichael] 10/8/2016 09:30

OUT 3697 shares @ 1693.16 ...... profit £700 .....;0

[tradermichael] 08/8/2016 13:49

IN 3697 shares @ 1665.48 ...... ;0)

[gbh2] 05/8/2016 20:20

Much appreciated M_K_Hubbert, I'll study those threads over the weekend, thank you.

[m_k_hubbert] 05/8/2016 19:13

gbh2, I too have exceeded the 4 x CGT Allowance in disposals in recent years and have exceeded it already for current tax year. HMRC rules determine that if either disposals exceed £44.4k or gains exceed £11.1k in current tax year then CGT supplemental section of tax return has to be submitted. Note also that the £11.1k of gains is not net gains in that should a person make a gain of £15k on one stock and a loss of £10k on another stock then net gains are just £5k being well below the CGT Allowance. Even so the CGT section would need to be completed as the gross gain of £15k has exceeded the £11.1k allowance.

There are 2 extensive CGT threads on these forums and a search using code 'CGT' will direct you there (edit, posted links below). These threads provide links to the online 'CGTCalculator' and the 'Stonebanks CGT Calculator' both of which I've found to be of great assistance in filing CGT returns, so much so that even with (say) 100 trades the whole process is completed in an hour...helped by my broker (HL) providing output in a format which does not take that much manipulation to generate the correct input fields for these online calculators (I use either Excel or Open Office spreadsheets to convert the data from HL).

CGT Threads:

[gbh2] 05/8/2016 15:08

My errors affect none other than myself, family cash is completely separate and looked after by a company :))

[minerve] 05/8/2016 14:52

gbh2 5 Aug'16 - 14:38 - 13040 of 13040

"Minerve, We play a different game but thanks, I appreciate your time & comment."

No problem. You probably knew what I said already but I thought I would say it anyway, just in case. Whatever game you play I hope it isn't as irresponsible as a certain posters on here.

[gbh2] 05/8/2016 14:38

Minerve, We play a different game but thanks, I appreciate your time & comment.

[minerve] 05/8/2016 14:30

gbh2

I mean to say 'you need to fill in the form' when I say 'declare'; they are both one and the same thing really.

As TraderMichael has said try and use your ISA allowances for yourself and your partner and for most it wouldn't be long before you will not need to declare on a tax return. £20,000 allowance as of April 2017.

I would never let the tax tail wag the dog as they say, and I certainly wouldn't just invest in one stock just to make my tax life simple, but with regards to section 104 holdings and so on - for the stocks I trade the most I use a section of my ISA to make my tax return a lot simpler. My steady stocks I keep outside. Sometimes as you build holdings you run into the limits of your ISA wrapper and I use that as an opportunity to review holdings and decide which ones should go and which ones should stay. I never invest in the same share over an ISA boundary (in and out of ISA) and/or over trading accounts with my partners account/ISA. I also try to keep a healthy cash holding in my ISAs to increase holdings when the opportunities arise. Managing investments in ISAs is not as straightforward as you would assume.

[andyadvfn1] 05/8/2016 14:24

Yes thanks, good stuff. This info could now affect me going forward.

[gbh2] 05/8/2016 14:13

I'm sure you're correct re ISA dividends and gains.

Thanks for off topic discussion.

[tradermichael] 05/8/2016 13:59

gbh: As far as I am aware, Share ISAs do NOT have to be declared on a tax return.

I built up a substantial investment via a Share ISA from the beginning (adding the maximum allowance each year and reinvesting dividends in the same account). That offsets the amount of work for the tax return.

(Also, at the risk of being contraversial, having just one company to trade, simplifies things somewhat (lol), compared to a diversified portfolio of 100's of companies) ...... ;0)

[gbh2] 05/8/2016 13:57

"you don't have to declare anything on your tax return"

I think they still need to know if you exceed the disposals though?

I understand its something to do with ascertaining whether you're a professional trader or not??

[tradermichael] 05/8/2016 13:54

andy - yes, if the asset is jointly owned (e.g. shares traded from a joint account), then you can add the allowances together.

Always remember that shares making gains in a Share ISA are tax free (as are dividends) and you don't have to declare anything on your tax return.

[gbh2] 05/8/2016 13:52

TM - That's what I do but I find the 104 holdings complicate things beyond belief, I just wondered of anyone had an easy way of getting the figures together !

Minerve, I think you'll find that simply declaring it doesn't satisfy the requirement, you need to fill out the SA108.

NB hit wrong key, 104 holdings

[minerve] 05/8/2016 13:24

gbh2

You just have to declare it on your tax return. The £44,400 is chargeable assets not gains. The £11,100 is allowable gains after losses.

[tradermichael] 05/8/2016 13:24

Gbh: I keep a spreadsheet and update it constantly with my trades. Then for the annual tax return I simply attach it with the form and put a summary as notes.

Remember, you can offset gains against looses in a given financial year, and you can carry losses forward if unused.

[andyadvfn1] 05/8/2016 13:22

OkThanks for that. Never heard of it before. If joint account assume can double amounts?

[tradermichael] 05/8/2016 13:21

Correct, you have to complete a Capital Gains form for the HMRC if your gains from disposals exceed £11,100 or if your total disposals exceed 4 x the annual exemption amount which is 4 x £11,100 (i.e. £44,400).