shares and tax returns

What sort of tax return? I have not filled in a Form 12 tax return in over a decade and simply write to Revenue directly when anything changes that might affect my tax liabilities, credits etc. From reading AAM it seems to me that some PAYE workers assume that they are obliged to file a tax return every year which may not be the case. If you do file a return and it asks for details of shareholdings then you must enter these. However there should be no tax implications on holding these shares until you receive dividends (in which case the dividend payments will be subject to witholding tax of 20% and overall subject to your normal marginal rate of income tax - 0%, 20% or 42% - with any shortfall to be made up or overpayment to be refunded) or you sell the shares (in which case the gain will be assessable for CGT at 20%).
 
Hi Clubman,

Thanks for that.
We have never done a tax return before but we have to do one this year because we bought an investment property last year.
So it seems I must declare these shares then,thanks.
Appreciate the reply.
 
If you send in a tax form and have forgotton to include your share purchases you could send them a letter a week or two later telling them of this omission.
 
Just curious as to why you don't want the wife to know about these shares? Perhaps you're planning a nice surprise for her down the line?
 
Not a tax expert but here's my understanding.............

No need to declare the purchase of shares on Form 12, however it will be necessary to include dividend income when it comes through (usually twice a year) and/or on capital gain when some/all shares are sold.


 
Bank Manager said:
No need to declare the purchase of shares on Form 12, however it will be necessary to include dividend income when it comes through (usually twice a year) and/or on capital gain when some/all shares are sold.
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Whatever about dividend income I don't think that capital gains are filed on a Form 12 but rather on a [broken link removed]
 
Hi Clubman,
The reason I dont want the other half to know is that I bought elan shares at 20euros each on a tip from somebody ,I bought 5k worth,and 2 weeks later they were not even worth a quarter of the value,I am afraid I will be hung drawn and quartered, as I very stupidly borrowed the money to invest,,,,,need I say more.
 
loughshinny said:
Hi Clubman,
The reason I dont want the other half to know is that I bought elan shares at 20euros each on a tip from somebody ,I bought 5k worth,and 2 weeks later they were not even worth a quarter of the value,I am afraid I will be hung drawn and quartered, as I very stupidly borrowed the money to invest,,,,,need I say more.
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That's an expensive lesson learnt. Can we use this case study the next time our 'no share tipping' policy is questioned?

As with all these things, you may find the hanging/drawing/quartering less painful if you 'fess up rather than waiting for her to find out (which you know she eventually will).
 
Has she not already wondered/asked what the loan that you're repaying was taken out for?
 
Haha Thanks Rainyday!!!
Yes please do use my tale of woe to warn others of the pitfalls of shares and tips.

Clubman, I have a completely seperate bank a/c to my spouse and then we have a joint a/c that we both pay into and use it for bills. We both work and would have no reason to need to look at the others bank a/c........if you see what I mean.#
Best regards to all
 
I hope you're not keeping quiet about this in the hope that other investments will come good and cover your loss like a little Barings employee we all know.
 
ClubMan said:
Whatever about dividend income I don't think that capital gains are filed on a Form 12 but rather on a [broken link removed]
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See panel 41 on Form 12 [broken link removed]

Not sure when Form CG1 applies, more complex situations maybe?
 
dam099 said:
See panel 41 on Form 12 [broken link removed]
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I stand corrected.

Not sure when Form CG1 applies, more complex situations maybe?
Click to expand...
Or less complex situations - e.g. when nothing other than a capital gain needs to be returned obviating the need for a full Form 12 return? I'm PAYE and have not filled in a Form 12 in many years now since I was not asked by Revenue and have dealt with issues through other forms or by simply writing to Revenue in order to keep my tax affairs (e.g. credits/allowances, over/under payment of taxes, CGT etc.) up to date.
 
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