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rod

When To Pay Tax @ Stock Market?!

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Hello,

I would like to know when do I need to pay tax if I make some winnings at the stock market!

I heard that u don't need to pay any tax of winnings if u just buy and sell standard stocks / shares!

But what about funds or other kind of trades like bonds, future and so on - do I need to pay tax on it, if not, when do I need to do so - like dividends!

Kind Regards,

Rod

Edited by rod

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Are you talking about your UK or IOM tax declarations ?

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I think capital gains are not taxable unless you do so much buying and selling of shares that it counts as trading income (i.e. it is your job)

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Are you talking about your UK or IOM tax declarations ?

 

sorry, I mean on the Isle of Man!

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Maybe the rules have changed - but IIRC (under the last tory govt I think) then I think you will be liable for UK tax on dividends on any UK investments. It certainly used to be like that I think. If you had UK investments then you had to make a UK tax return I think. Depending on how your stuff is held.

 

And it used to be the case IIRC that IOM then taxes you again.

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Hello,

I would like to know when do I need to pay tax if I make some winnings at the stock market?!

I heard that u don't need to pay any tax of winnings if u just buy and sell standard stocks / shares?!

But what about funds or other kind of trades like bonds, future and so on - do I need to pay tax on it, if not, when do I need to do so - like dividends?!

Kind Regards,

Rod

 

Dividend is income, goes in your tax return. Profit made by buying low and selling high is a capital gain and tax free for you as an Island resident *unless* it is you sole/main source of income - i.e. you sit at home playing the stock market instead of doing some real graft as a DOI employee or similar.

 

You can always convert dividends into a captial (tax-free) gain if you prepare this from the beginning.

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oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds!

funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ??

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oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds!

funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ??

 

You sound a bit thick so let me summarize the entire Manx tax system. IF YOU EARN MONEY BY INCOME OR DIVIDENDS YOU PAY INCOME TAX, IF YOU EARN MONEY BY CAPITAL GAINS YOU DON'T PAY INCOME TAX OR CAPITAL GAINS TAX

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oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds!

funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ??

 

Winnings - you have to differentiate between interest you may receive (some funds will generate interest once or twice a year) and profit you make when you sell the funds.

 

Interest is taxable as income tax (same as earnings), profit on selling is not taxable as there is no capital gains (profit) tax for island residents.

 

As I mentioned earlier there are legal ways of avoiding interest and generating purely capital gains.

 

And you are not thick, just a newcomer to this area of finance I guess :)

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oky shares are tax free, if u are a non-profesional-trader - and that isn't ur main-job but what is if I buy funds!

funds are managed by profesionals, so could it be that u have to pay tax on ur funds winnings ??

 

You sound a bit thick so let me summarize the entire Manx tax system. IF YOU EARN MONEY BY INCOME OR DIVIDENDS YOU PAY INCOME TAX, IF YOU EARN MONEY BY CAPITAL GAINS YOU DON'T PAY INCOME TAX OR CAPITAL GAINS TAX

 

You sound like one of those people who when on holiday and can't speak the language just talks slower and increasingly louder to the obviously stupid foreigner.

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I think the question has been answered correctly though.

 

If you receive dividend income (ie get money without selling any shares) then it's taxable

 

If it's a capital gain (ie get money from selling your shares) then it's not taxable.

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thanks a lot 2 everyone 4 the answers :thumbsup:

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