Buying shares as a regular savings plan

Fella said:

Cheers you mention this headache about filing a tax return for dividends , I am trying to find out how to do that to see hassle it actually is , as usual its very hard to find info on the revenue website , is there a key post on how to pay dividend tax anywhere ? I can't find one.

Click to expand...

http://www.revenue.ie/en/tax/it/leaflets/guide-pay-file.pdf

Look at panel E and F

I have to admit I havnt looked through this guide properly myself!!

Fella just out of curiosity assuming you are an average earner and will be paying on the dividends income tax at 40 %, USC at 7 or 8 % and PRSI at 4 % total = 51% or 52% and over a year 5 year investment period you sell up, having received for example GROSS 5000 Euro dividends after 5 years and 5000 Euro gain on the investment trust.
5000 gain at 33% = 1650 tax
5000 dividend at 51%= 2550 tax
TOTAL = 4200 tax on investment trust (or u.s. ETF) (slightly higher if you are in the 8% USC category)

for a EU UCITS ETF
5000 dividend at 41% = 2050 exit tax
5000 gain at 41% = 2050 exit tax
TOTAL = 4100 tax on EU (UCTIS) ETF
Assuming this EU ETF was accumulating and you earned 10,000 gain over the 5 years then the total would also be 4,100 and no extra paperwork (due no income) over the 5 years...I think I am probably wildly estimating/simplifying things there though.

With no experience in stock market investing I have no idea if this ratio gain/dividend (5000/5000 as i have used) is close to what you can expect, i guess it depends on whether the trust targets high or low income (dividend) stocks? but food for thought......
However Regarding picking an investment strategy based on tax issues we must remember what Sarenco keeps banging on about......

We shouldnt forget Sarencos advice though about his ill fated investment doggy with the bionic tail.....or something like that.....

Fella, (or anyone else here), I wonder if you took the plunge on any UK investment trusts last year as you were considering, and what the experience has been? I'm considering the same, and keeping an eye on any volatility in either the EUR->GBP exchange rate or share prices coming up to the Brexit referendum. (Yes, I know one is not supposed to try to time the market ... but I've never really accepted that).

Hi Dub Nerd! With a good mathematical brain, you should take a look at the spread betting. It's simple but powerful maths. And most importantly it's outside the interests of revenue.

I admit to knowing very little about it, but isn't spread betting just gambling ... with the house guaranteed to win by controlling the spread? Where does the maths come in?

Spread betting is just gambling you can't win unless you have an edge that can beat the spread.
Dub_nerd I've bought investment trusts in GBP yes I'm regularly investing more money into markets as part of my plan , I just stick blindly to my plan of invest regularly if my spreadsheet says buy 5k of foreign and colonial tomorrow and Sky news tells me sterling could drop 50% tomorrow I'll still stick to my plan.
Sterling is what it is imo it's at a fair price based on the percentage price of a Brexit or not. I've not much interest of a Brexit happens or not but if I had I'd just back it on Betfair in a straight yes no bet.
Unless you have information that others don't have re Brexit then everything is factored in to prices I don't believe there is any edge to have so buying trusts now or afterwards is also a form of gambling .

Thanks for the info!