# Bought shares on sharewatch (FXCM) - Now what?



## Conshine (22 Feb 2012)

I bought some shares that I intend to keep for the medium to long term.
What do I need to do tax-wise?

Do I just leave the shares to (hopefully) gain in value over the next few years, then when I sell, declare my profit to the revenue?
Is that it?

Or do I need to be telling them anything on an annual basis?

Thanks


----------



## Gulliver (22 Feb 2012)

If you get dividends, they will be taxed at source, but you should declare them.  Otherwise no reporting to tax-man until sold


----------



## Conshine (22 Feb 2012)

Thanks for that!

How do I know whether a share will pay dividends, or whether it is just a simple share that will go up and down in price and not pay out until I sell?


----------



## Gulliver (22 Feb 2012)

Conshine

Most shares go up or down as a result of the dividends they pay or the dividends they expect to pay.  Dividends are the very essence of ownership of shares in normal circumstances.

Are you the registered owner of the shares - do you hold actual share certs?  If so, you have various shareholder rights inclding the right to receive regular communications and dividends from the company.

More likely, you hold an account with Sharewatch which shows you as the beneficial owner of shares, but the actual shares are held in the name of a Sharewatch nominee company.  In that case, the company whose shares you hold may not be aware of your existence.  If dividends are paid, you are reliant upon the nominee company to distribute them.  If information is issued, you are reliant upon the nominee company to distribute it.

Sharewatch introduced the nominee system a few years ago.  Previously, they provided you with full registered ownership via the Crest system. As soon as they did that, I pulled out of Sharewatch.  I always insist that I become the full registered owner of my shares.


----------



## Conshine (27 Feb 2012)

Gulliver said:


> but the actual shares are held in the name of a Sharewatch nominee company. In that case, the company whose shares you hold may not be aware of your existence. If dividends are paid, you are reliant upon the nominee company to distribute them. If information is issued, you are reliant upon the nominee company to distribute it.


 
They emailed me a PDF of the trade and it says "Held in Nominee"
So it seems you are right.



Gulliver said:


> Sharewatch introduced the nominee system a few years ago. Previously, they provided you with full registered ownership via the Crest system. As soon as they did that, I pulled out of Sharewatch. I always insist that I become the full registered owner of my shares.


Sharewatch seem to be the recommendation on AAM.
Are there any brokers in Ireland that provide full ownership?
What are the recommendations and what are their charges?
Thanks


----------



## Gulliver (27 Feb 2012)

I am not aware of a broker in Ireland who provides online share trading combined with full registered ownership.


----------



## Conshine (27 Feb 2012)

What I am after is to somehow be able to purchase some shares and just keep them for the long term. I do not want to be buying and selling regularly.
So it seems the online method is probably more for those trading regularly, would you agree?
What brokers could I purchase through, so I can take advantage of getting full ownership?


----------



## colliox (8 Apr 2012)

does anyone know if sharewatch.ie shares are euroclear?


----------



## smiley (9 Apr 2012)

colliox said:


> does anyone know if sharewatch.ie shares are euroclear?



If you mean CREST..no..your shares are held in fxcm's nominee account.

Shares used to be held in Euroclear CREST when sharewatch's broker was Directsharedeal.


----------



## smiley (9 Apr 2012)

Gulliver said:


> If you get dividends, they will be taxed at source, but you should declare them.  Otherwise no reporting to tax-man until sold



All dividends are regarded as 'income' so you must pay income tax on all dividend income.

Regardless of whether you have paid all the income tax due through the dividend withholding tax paid you still MUST declare this income on your annual return to the revenue.


----------



## colliox (9 Apr 2012)

do you know if they use the euroclear transfer system to transfere shares into accounts. i am if the company i work for can transfer shares into my sharewatch by means of euroclear if that makes sense


----------



## smiley (9 Apr 2012)

I doubt it but send them an email and they will let you know very quickly.


----------



## colliox (12 Apr 2012)

i was talking to trade support at fxcm who deal with sharewatch shares and they said the shares are still held in crest, and they can accommodate euroclear transfer, they also said they will be able to issue share certs once the changeover has been completed @30 euro


----------

