So ive dissuced with a friend of mine for about 2 hour’s straight, and it’s gotten to a point of him (with some weird, dodgy) newsarticles making me quistion myself…
Just to clear out things.
Am i right in this:
You dont pay tax of the money you deposit into your portfolio (this money has already been taxed before it was deposited)
You (Only) pay tax on gains / dividend
This guy has made me go nuts, saying the money you deposit is also gonna be taxed, along with the gains / dividend.
You don’t pay any tax on money transfering from a bank account into your available funds.
When you buy shares if there’s stamp duty you pay that.
When you sell in the invest you need to take into account gains you have made. If you exceed your allocation then you pay tax on it.
You’re correct. You only pay capital gains tax on profit you make. Unless you’re isa then you pay no tax.
So you’ve put in 10k. Put that in one stock, gain 30%. Sell, you have 13k. Technically you’d pay tax rate on that 3k, but… cap gains is like first 13k tax free so you only pay tax when you’re profit goes over the threshold.
The money you deposit doesn’t get taxed.
You get taxed on your gains.
Depending on the type of investment you get taxed differently. But only on the money you make.
Yep sorry should say on gains at end tax yr.
Thanks for the clarification. I was legit saying the same thing for 2 hour’s. Our convo endend when i started shouting after losing it. Some people man, they just wont listen to what you say… gzzz
Wish ya’ll a good weekend
I’m really curious to hear the reasoning that led him to this conclusion. Serious mental gymnastics.
Yeah, sounds like strange strange conclusion to jump to.
Can you imagine if you got taxed every time you moved money!