Gsk Share Discussion Threads

[essentialinvestor] 15/6/2015 15:33

Well it looks like those who referenced near £13 are being validated imv,
from over £16 in just weeks.

[essentialinvestor] 15/6/2015 12:42

Michael, I got a little lucky, won't claim that as skill,
thought Greece may come back like one of those horror movies with
multiple sequels - someone must blink soon or its default.

GSK should outperform on risk off days, a long time ago it did just that.

[anhar] 14/6/2015 10:35

Nice of you to admit you were wrong, I appreciate that. So often on bulletin boards people never do this or sometimes just turn nasty when their position becomes indefensible.

[stephencracknell] 13/6/2015 22:24

Anhar-apologies, i am wrong. Having looked into this today i have got to the bottom of this very confusing situation. The way my isa provider shows my divis makes it appear that 10% has been deducted. Over the years i have seen this same argument played out many times-there are a lot of people out there with the same view i had.

[essentialinvestor] 13/6/2015 20:31

anhar, good summation and would hope most managing their own money
are already aware.

[jadeticl3] 13/6/2015 20:27

It may be no great deal to you Anhar to hear that I agree with you, but it is a relief to me have your view spelled out and in agreement with what I felt was the case. I too was surprised by what SC stated!

[anhar] 13/6/2015 15:57

No absolute figure, it's relative to the market yield at the time I buy.

[racg] 13/6/2015 15:48

Anhar what is the yield you will not buy below in your portfolio?

[anhar] 13/6/2015 15:37

anhar - what i am trying to say is if you are a basic rate taxpayer there are no advantages holding shares in an isa for income, 10% tax is deducted at source whether it be in an isa or not. if you are a higher rate tax payer it is better to receive income in an isa because it is taxed only at 10% and not your nominal rate.Gorden Brown brought this rule into force after peps were abolished.If in any doubt just look at your gross and net divis in your isa and you will see a 10% deduction

I don't like repeating myself but I need to because you are persisting with the incorrect view that tax is deducted from dividends. This is about the third time I've tried to explain it and you are quite wrong.

The absence of any tax deduction applies to however the shares are held, whether direct or in an ISA etc. The company paying the divi cannot know or care whether their shares are held direct, in an ISA or in some fund etc. All shareholders are treated equally, ie. no tax deduction.

If you can't understand this, then one way to prove it is to compare the divis declared by a company with what you receive. If a share says it is paying X pence, then X pence is what you receive. There is nothing deducted. Or if you really want to do it properly, like I have, study the tax law on the subject. It's complex but what I have said is correct. Don't rely on information from your obviously ignorant ISA manager who clearly does not understand this at all.

I agree that for basic rate taxpayers there is no income tax advantage in an ISA. But that is not because tax is deducted, it is because in an ISA there is no tax to pay and outside, divis are effectively tax free to BRTs. As an aside though, there may be capital gains tax advantages in an ISA if there is the potential to ever realise a sufficiently large gain.

You are further wrong on 40% higher rate payers. In an ISA, there is no tax. If held direct, the effective tax liability is only 25%.

My ISA shows no "gross" and "net" divis because they don't exist. There is only the actual divi received, which I repeat yet again, is the same as the paying company pays so there is no deduction. If your ISA shows this, then, like the completely wrong advert you posted earlier, it is talking nonsense.

You and it seems your ISA manager are making the very common mistake of thinking the 10% tax credit is a deduction, it is not. There is no tax deducted.

As for the previous system of taxing divis which is many years ago, what does it matter now how that worked? I won't bother to explain it because it is wholly irrelevant.

[tradermichael] 12/6/2015 07:46

An advisory committee to the U.S. Food and Drug Administration recommended approval on Thursday of GlaxoSmithKline Plc's drug mepolizumab for severe asthma in patients aged 18 and older.

The panel voted 10 to 4 against approving it in children aged 12 to 17.

The FDA is not obliged to follow the advice of its advisory panels but typically does so. If approved, the drug would be marketed under the trade name Nucala and be the first new biologic treatment for severe asthma in more than a decade.

Asthma affects more than 22 million people in the United States. Severe asthma accounts for 5 to 10 percent of that population, according to GSK.

Mepolizumab is a monoclonal antibody that binds to a receptor known as interleukin-5 which promotes the growth of eosinophils. These are certain type of white blood cell that can accumulate in the lungs of patients with asthma.

The extent of these accumulations correlate with the frequency and severity of asthma exacerbations. There are currently no products designed to treat patients based on predefined eosinophil levels.

The drug is designed to be given once every four weeks by injection. GSK is testing it in other conditions, including chronic obstructive pulmonary disease, a respiratory disorder often associated with smoking.

[stephencracknell] 11/6/2015 21:23

Correct. You will not pay tax on hicl's divis in an isa and a few others also because where they are domicled .

[racg] 11/6/2015 21:09

So hold hicl and jlif in an isa to maximise the tax benefits. Correct, I think.

[stephencracknell] 11/6/2015 20:07

anhar - what i am trying to say is if you are a basic rate taxpayer there are no advantages holding shares in an isa for income, 10% tax is deducted at source whether it be in an isa or not. if you are a higher rate tax payer it is better to receive income in an isa because it is taxed only at 10% and not your nominal rate.Gorden Brown brought this rule into force after peps were abolished.If in any doubt just look at your gross and net divis in your isa and you will see a 10% deduction.

[fabius1] 11/6/2015 16:43

EI - It's not over yet on RDSB. You will get another shot at a 1900 test.

[essentialinvestor] 11/6/2015 16:39

Well should have back my instinct and also had some RDSB, hey ho

[fabius1] 11/6/2015 16:37

EI - Good decision. We'll make a trader of you yet.

[essentialinvestor] 11/6/2015 16:01

I grabbed a small profit this morning,
will be back in again at some point.
Much easier just to hold and collect the income,
must try that sometime ).

If GSK does get close to £13 (which may not happen)
that level may be a really decent longer term buy and hold point FWIW.

[anhar] 11/6/2015 15:39

"...Where the underlying assets of the fund generate dividend income which is paid as a dividend distribution, the dividend is paid with a 10pc tax deduction which is not reclaimable. Thus Isa investors receive their dividend distributions with 10pc tax deducted."

This is just wrong, see my earlier message. I repeat, no tax is deducted from UK dividends. What the company pays, you receive in full and thus ISA investors, and not just there but everybody else outside an ISA too, receives their dividend with no tax deducted.

The 10% tax credit is not a deduction in any sense and is not reclaimable because it was never deducted in the first place.

[fabius1] 11/6/2015 14:33

sc - The rules were changed by Broon when they replaced PEPs with ISA's. I seem to recall PEPs were completely tax free and the notional 10% deduction was refundable whereas ISA's only provide protection from higher rate tax.

[anhar] 11/6/2015 11:33

...Are you saying, Anhar, that in some circumstances tax is deductible within the ISA?

Not at all, on the contrary all UK divis are tax free in an ISA as I said previously.

It was stephencracknell who said that in an ISA "Everyone pays 10%" and I was correcting that mistaken view.

[jadeticl3] 11/6/2015 11:27

I am a 40% taxpayer. Any share dividends I receive outside my ISA I declare, and the divi is taxed appropriately. Within the ISA no declaration is made, and I am under the impression that tax is not deducted. Are you saying, Anhar, that in some circumstances tax is deductible within the ISA?

[anhar] 11/6/2015 10:27

...you do not receive divis in an isa tax free. Everyone pays 10%

A popular misconception. There is no tax deduction from normal dividends however they are held, ISA or direct etc. But the government is largely to blame for the misunderstanding due to the silly 10% "tax credit" which is not a deduction because the company pays exactly the same amount as the shareholder receives, without deducting anything.

So, rather than "Everyone pays 10%", all UK divis are tax free in ISAs. Non taxpayers and basic rate taxpayers also receive divis tax free in the great majority of cases and even most 40% taxpayers holding direct have to pay only 25% tax but it is not deducted, it is calculated with their tax returns.

[stephencracknell] 11/6/2015 10:06

Jadetical3 you do not receive divis in an isa tax free. Everyone pays 10%