Capital Gains - Shares

[hugebrain]

Hi,

I understand you can make £9,200 each year profit on shares without paying any tax. It seems like too much trouble to actually research and buy different shares and sell appropriate amount to make this exact profit each year, especially since I'd have to go through compliance for each purchase and sale.

Are there any companies that will do this for me? I would deposit a sum of money and they could pick (randomly or whatever) a selection of shares and then sell enough of the winners to use up my allowance each year?

Hugebrain.

[RightLaugh]

Hi,

I understand you can make £9,200 each year profit on shares without paying any tax. It seems like too much trouble to actually research and buy different shares and sell appropriate amount to make this exact profit each year, especially since I'd have to go through compliance for each purchase and sale.

Are there any companies that will do this for me? I would deposit a sum of money and they could pick (randomly or whatever) a selection of shares and then sell enough of the winners to use up my allowance each year?

Hugebrain.

if you can make 10K profit a year then you should stop working and do this full time. Very unlikely. Especially in the current climate.

[mace]

Yep

They're called unit trusts and investment trusts.

You can also put a further £7200 per year in an ISA (tax wrapper which can house shares, unit trusts, investment trusts or plain simple bank accounts). An ISA will never be liable for capital gains tax. IMHO, given that you can choose from hundreds of unit trusts and the management fees are lower, this is 1 of the best ways that contractors can invest for retirement rather than pensions.

Negatives imho with pensions are:-

1. Limited funds to choose from
2. Generally pension funds aren't the best performers
3. Heavy management charges
4. Lots of small print, obscure laws and paperwork
5. Have to deal with an independent financial advisor IFA. (If you think agents are dodgy you watch how much an IFA can pocket in commission).
6. Your annuity income will be taxed
7. Unable to dip in to funds before 55
8. Government has a nasty habit of luring people in to pensions and then changing the rules. Currently SIPPs are quite attractive but see how long it lasts.
9. If you die 1 day after you retire, the company providing the annuity can take the whole lot
10. Can't pass on your pension to your kids

If you still want a pension, then get a Self Invested Personal Pension (SIPP) or become a permie in a higher tax bracket with employer contribution (preferably only employer contributing).

[hugebrain]

if you can make 10K profit a year then you should stop working and do this full time. Very unlikely. Especially in the current climate.

I don't think I would have to make 10K profit each year.

Imagine if I invested in several random stocks and broke even over the year. I'd expect some of the stocks to have gone up and some to have gone down. I could sell the winners and keep the losers, so taking my full capital gains tax allowance and having some loss making positions in the portfolio to offset against profits in future years.

In a few years when I'm rich and actually can make more than nine thousand a year on investments, I'll be glad I didn't waste the tax allowances in my days of poverty.

That's the sort of thing I'm looking for - does anyone know who provides something like this?