Diverse Income Share Discussion Threads

[ariane] 20/11/2022 10:13

disagree Spud

[spud] 19/11/2022 12:40

Pound to a penny that 90% of those on here don't declare. spud

[florenceorbis] 19/11/2022 11:28

UK Capital Gains Tax Changes Deal Heavy Blow To Investors

By City A.M - Nov 18, 2022, 2:30 PM CST

The Chancellor has slashed the exemption amount for capital gains tax and cut the dividend allowance in half today in a move that will strike a “heavy blow” to the UK’s entrepreneurs and investors.

In the Autumn statement, Jeremy Hunt said the government would cut the dividend allowance from £2000 to £1000, with a further 50 percent cut due to come from April 2024, meaning that investors will now pay tax on dividends at a rate depending on their wider income.

Entrepreneurs who pay themselves via dividends are also set to be hammered by the measures announced by Hunt today. 

A cut in the Capital Gains Tax threshold from £12,000 to £6,000 meanwhile is set to hit those with their cash outside ISAs and pensions tax wrappers, who will now pay a higher tax rate on their returns.

Analysts say the dividend tax cut would choke off investment and dampen returns at a time when ministers should be encouraging investors to back UK firms. 

“A dividend tax that kicks in at just £500 of earnings by 2024 could disincentivize investing at a time when it is really needed to help the economy grow, and for millions of investors who are looking to do more with their money to stay ahead of the pernicious effects of inflation,” said Sam North, analyst at trading firm eToro.

He added that slashing the allowance could lead to “unexpected outcomes” like people putting more money away from “typical FTSE income paying stocks to other growth focused – and typically riskier – investments elsewhere.”

Analysts at Bowmore Asset Management said that the changes to capital gains tax and dividends were a “double whammy” against investors.

“Whilst high net worth individuals are unlikely to feel much pain from this, for many small investors that increase in tax on dividends and capital gains is going to be significant,” said Charles Incledon, client director.

“Cuts to this income could cause a real squeeze on the finances of many small investors, especially those who are retired and depend on dividend income from their shares. Bad news considering that we have a cost of living crisis at the moment.”

By City AM

[the chairman elect] 17/11/2022 16:33

Post todays UK Budget what are the most tax efficient investments for both Non Tax Payers as well as Basic Rate Taxpayers?

GILTS v CORPORATE BONDS v DIVIDENDS v Other Income Streams?

[florenceorbis] 17/11/2022 14:57

Autumn Statement 22: 'Double whammy against investors' with hit on dividend and CGT allowances
Employers' NICs threshold frozen
Valeria Martinez

17 November 2022 • 2 min read

The government is halving the dividend tax allowance, Chancellor Jeremy Hunt has announced, falling from £2,000 to £1,000 next year and to £500 from 2024.

The dividend allowance was introduced to help savers in 2017, explained Shaun Moore, financial planning expert at Quilter. Having initially been at £5,000, it has been frozen at £2,000 for the past five years, which covered the majority of savers' dividend income.

The Chancellor's move will mean more people end up paying tax on their dividends, he said.

"For a basic rate taxpayer, the reduction in the dividend allowance to £1,000 will mean they will end up paying £87.50 more in tax. Similarly, if you are a higher rate taxpayer this rises to £337.50 more in tax and £393.50 if you are an additional rate taxpayer. From April 2024, a basic rate taxpayer will pay £123.75 more, increasing to £506.25 and £590.25 for a higher rate and additional rate taxpayer respectively."

Delivering his Autumn Statement at the House of Commons today, Hunt also said the annual capital gains tax exemption will fall from £12,300 to £6,000 next year, and then be cut to £3,000 from April 2024.

"The cut in the dividend allowance and Capital Gains Tax threshold is a double whammy against investors," said Charles Incledon, client director at Bowmore Asset Management.

"Cuts to this income could cause a real squeeze on the finances of many small investors, especially those who are retired and depend on dividend income from their shares. Bad news considering that we have a cost of living crisis at the moment," he added.

Autumn Statement 22: Government unveils £13.6bn package to support business rates payers

Think tank Capital Economics had said that another possible measure would be raising the dividend tax rate by 1.25 percentage points across all three tax bands, but Hunt did not confirm this in his speech.

The chancellor also announced the government will freeze the employers' NICs threshold until April 2028. However, it will retain the Employment Allowance at its new, higher level of £5,000.

According to Hunt, some 40% of all businesses will still pay no NICs at all. Meanwhile, the VAT registration threshold will be maintained at its current level until March 2026.

Other measures include a series of "stealth" raids on income tax. The chancellor has also lowered the threshold at which people pay the 45p rate of income tax from £150,000 to £125,140.

A month ago, Hunt, who was appointed Chancellor of the Exchequer on 14 October, ripped up the bulk of former chancellor Kwasi Kwarteng's Mini Budget, reversing nearly all the tax measures introduced in the 'Growth Plan' unveiled on 23 September.

The measures he reversed included the £6bn cut in the basic rate of income tax, changes to dividend taxes, a VAT tax break for foreign shoppers and a freeze on alcohol duty.

[aleman] 10/11/2022 08:04

STCM just declared a delayed 5p dividend due to changes in tax legislation which cast doubts on its treatment. Trading this year is slightly ahead of last year so next year's dividend could be slightly bigger. Shares are only 40p.

[sunshine today] 03/11/2022 10:43

Help please

Has anyone the software to pick the top ten growing dividend companies on the LSE.

Then list them please.

I am after the % growth ( not the cash amount ).

You will be rewarded

Must be at least 50% year on year

[marmar80] 03/11/2022 09:00

If Hur won't be taken over, then they will pay approx 30% dividend to shareholders in Q1 23.

[skinny] 03/11/2022 08:49

This link may be of use - all columns are 'sortable'.

[aleman] 03/11/2022 08:20

Sorry about that. I did not even look at the 100 figures. All the ex-dividend dates are ancient. The 250 figures look more up to date but I'm not sure all those are correct either. Ladbroke's Coral was taken over by Flutter, I think?

[cassini] 02/11/2022 22:22

Reading through that first link, all the share prices appear wrong, so then all the dividend yields are wrong.

RIO isn't 6110p and Imperial isn't 1569p etc. In fact, the prices given look like a snapshot from mid-2021.

[aleman] 02/11/2022 18:06

Some chunky nominal yields out there now - but how many will get cut?

[k mon] 30/10/2022 17:53

Stil don't get it.. the 'Slack thinking of the proposition..


"However, when extraordinary events happen like the price of gas rising exponentially due to the invasion of Ukraine, which then has a knock on effect on the general cost of living when entering a winter period, it seems fair and logical for the company gaining the unforeseen profits to distribute them to more people than their shareholders........."

--- So then..
What's to stop Polititians Starting a War
.. to then Profit from the excess prices that ensue..
(aided & abetted by the 'Slack Jawed masses'... who get thrown a tid-bit.. )


- Create a Problem'
--- Be seen to be 'Just or Virtuous in 'Dealing with 'The Problem'
---- Stay Popular..
------ make sure you can skim plenty.

.. How do you think the War 'Started'..
Did some Potato Farmer suddenly get ambitious.. ?

[sarkasm] 30/10/2022 11:44

nice post Ale

[waldron] 30/10/2022 11:16

Cheers Ale

[aleman] 30/10/2022 10:33

Shell's 9-month tax charge has nearly quadrupled from $4.5bn to $16bn so it will pay about $15bn more tax this year - without a windfall tax. The dividend over the last 12 months was 98 cents. It was 188 cents before Covid so it's still barely above half where it was. It would need to MORE than double to bring it back into line with inflation, wages and pensions yet media would scream blue murder if that happened so Shell shareholders will have to continue to suck it up and pay more tax while getting vastly reduced income.

[tag57] 29/10/2022 10:35

Wynterwilde, I understand your point but consider the current 65% tax rate on the UK O&G industry more than sufficient to satisfy them paying their way.
Baring in mind we want the O&G industry to produce more in the near future would say further tax increases are going to be counterintuitive.
It would be much better for the Govt to turn their attention to some of the large US tech companies that pay barely any corp tax in the UK.

[florenceorbis] 29/10/2022 10:30

as yet the majors are not giving much to shareholders byway of divi increases but atleast they be paying more taxwise to governments

Many companies are using higher energy prices to up food and other products prices etc

Seems unfair in some cases to penalise just one sector

[wynterwilde] 29/10/2022 10:19

k mon

I didn't say that profits made on normal everyday trading were 'appropriate' for windfall tax.
However, when extraordinary events happen like the price of gas rising exponentially due to the invasion of Ukraine, which then has a knock on effect on the general cost of living when entering a winter period, it seems fair and logical for the company gaining the unforeseen profits to distribute them to more people than their shareholders.........

[k mon] 28/10/2022 15:06

why..?

Next you'll be saying that 'redress'.. is 'appropriate'
.. even due to planned & well foreseen events..
or how about when any Profit is made..

That's just slack jawed rapaciousness.. dressed up as some 'Public Consciousness'

..That's the type of guff that you hear from polititians & Charlatains all the time ..

-- Now --- Give a Reason ..

[boystown] 27/10/2022 09:49

Clearly it's high time for a windfall tax! :-(

But equally clearly, there'll be subsidies running the other way when we have a bad quarter right? .... right!?